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Can I take a loan from my 401k if my employment status is now 'inactive'?

My employment status was recently changed to 'inactive'. I have a 401k through that employer and I am wondering if I can take a loan out without penalty and pay the Principal & Interest back into the 401k?

Oct 30, 2017 by David in  |  Flag
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From the sound of it, you will be able to take a withdrawal from that 401k, if you are not employed by that company anymore. You won't be able to do a loan if that is the case.

Comment   |  Flag   |  Oct 31, 2017

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