No. of Recommendations: 2
One of the other problems is if you quit your job or get laid off, you have to pay the loan back within 60 days or it will be deemed a distribution, and you pay the penalties AJ mentioned.

The particulars of that issue depend completely on the provisions of your employer's plan. Some plans allow you to continue making payments even after you leave your job. Other plans have requirements to pay back the loan, often within 30, 60 or 90 days. But it's all dependent on what the plan rules say.

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