You're correct. Looking it up, that's a "rare" case, so everybody has to look up the rules for their 401k. Since mine said it had to be paid back in total in 60 days, I opened the line of credit. Probably would have done that even if I could pay back on schedule, as you could. I took the shortest term loan possible, and the payback took a good chunk out of my paycheck. Without a paycheck, and no backup plan, a good chance I would default, and have to pay the penalty and taxes. You always need a backup plan for any action where no plan can screw you. Unless you're okay with getting screwed, which works for some people. Look at all those people carrying a credit card balance. I know plenty, and they're living happy. I never tell anybody how to live their life. And even the best laid plans......