Can you pay back a 401K loan out of the balance of your 401K if you leave the company?

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1006059

2026-07-01 11:06

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No, you cannot pay back a 401(k) loan directly from the balance of your 401(k) if you leave the company. When you leave, the outstanding loan balance typically becomes due, and you must repay it in full, often within a short time frame. If you fail to repay, the loan may be treated as a distribution, which could result in taxes and penalties. Always check your specific plan's rules, as they may vary.

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