[heavyheavy]

Its a loan against yourself

[CoffeeOnWrite]

Banks still want to see evidence of your ability to pay it back.

[loeg]

401k “loans” are a misnomer. There’s no underwriting or leverage. It’s an unpenalized withdrawal with payback (as opposed to regular early withdrawals, which are penalized).

[CoffeeOnWrite]

As discussed upthread, 401k loans are not generally accessible to unemployed people.