<prompt> Human: I took out a loan against my 401k for my wife and I to purchase our first home. I changed jobs since taking out that loan, and I have found out to my surprise that when you switch jobs, you have only 60 days to pay the loan provided by the employers 401k plan. If I dont pay the loan, I have to take the the penaltytax consequences.My 401k loan is approximately 20k. I have about 13k in savings. I am wondering if I should pay a portion of it back, or if I should just take the tax hit. I can get out of the 10 penalty since it is my first purchase. Just trying to optimize what is best. Any thoughts?Edit: I should clarify, the 13k includes all savings. I want to leave some cushion for an emergency fund.  <response>: I have found out to my surprise that when you switch jobs, you have only 60 days to pay the loan provided by the employers 401k plan. If I dont pay the loan, I have to take the the penaltytax consequences.Ugh, it pains me that things like this catch people by surprise. I wouldve hoped that someone from HR or the 401k provider would do some sort of loan counseling before you sign the paperwork even though, to be fair, all of the terms wouldve been contained in the paperwork itself! Paying income taxes and penalty, while eviscerating your retirement account sound suboptimal. Any way you can get a different low-interest loan to pay back the 401k loan? 