+3 votes
by (1.3k points)
Hi everyone!  Looking for some input regarding my 401K.Hi everyone! Looking for some input regarding my 401K. I recently moved to Maryland and unfortunately my current company is letting me go since they do not offer remote options and do not service this area. My question is I currently have a 401K, in 2018 I took out a loan and the payments were being taken out of my paycheck bi-weekly to pay myself back. Now with today’s events all hiring in MD has halted, could anyone give me advice as to how I should proceed? Should I look into the CARES act option and pay the loan off with what I have in my 401K and then roll the rest into a IRA? This is the first I’ve ever dealt with anything like this so any advice is greatly appreciated
Hi everyone!  Looking for some input regarding my 401K.

2 Answers

+3 votes
by (10.1k points)
Call the administrator of your 401k. They will have info geared towards your situation. You may also look over the paperwork you signed when you took the loan out. It should speak to what happens if you leave the company before the loan is paid back.  
+2 votes
by (4k points)
I don’t believe that’s a feature on most 401k loans. The cares act allows for delayed repayments but I don’t see anything allowing payment from the 401k itself. Thankspically a loan that is not repaid is deemed a distribution and income to you. I’ve also read that the plans don’t have to implement these options, so it would definitely depend on your plan. I’ve worked in payroll and with 401k plans for many years, although I’ve also seen some companies allow for payments even after an associate is terminated
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