Loan against 401k, want to repay.

[scoobys_nurse]

I am nurse who works and lives in Florida. I work for HCA and took out a loan against my 401k because of the horrible economy. I owe 2,000 or so dollars now and am about to get a new job. They said if I leave the company it will automatically default. So my question is this I have money in my 401k right now, could I cash some of it out to pay back the loan I took out?

 

[tranquility]

You want to take out money from your 401K to pay back your 401K? Is that right?

 

[cbg]

As long as you are employed by them, you cannot cash out the 401k in any amount. Loans are permitted by law - cash outs are not.

 

[tranquility]

Loans from your 401K will be treated as a distribution if not paid back within 5 years (or used for another acceptable purpose). Why take a distribution to stop a...distribution?