Hello,

I need to withdraw my 401k and I have a loan attached to it. Can the provider deduct the loan and send the difference? I am aware of the penalties attached to early withdrawal.

Thanks,
FacMgr

If you liquidate your entire plan then any outstanding loan balance will be deducted from the total plan value. However, your tax liability and penalty will be based on your total plan value which includes the outstanding loan balance.

This is really NOT a good idea. I don't know your circumstances, but you would be throwing away a LOT of money.