If you quit or lose your job, you may have to repay the full balance quickly or face taxes/penalties. Option 2: Hardship Withdrawal
You can take money out permanently if you have an "immediate and heavy financial need." can i use my 401k to buy a house
Review the IRS guidelines on 401(k) loans for official rules. If you quit or lose your job, you
Your money isn't invested while it's out of the market. can i use my 401k to buy a house
You don't "pay it back," but you lose the compound growth.
Loan interest is paid with after-tax dollars, then taxed again when withdrawn in retirement.
The amount is added to your taxable income for the year.