<prompt> Human: I recently left my state of birth to accept a job out of state. I own a house in my previous state and I am currently living with a friend where my job is. We are in the process of selling our home and want to be together a bit sooner rather than later. The main reason for this is our 2.5 year old daughter who is starting to miss me pretty badly. I have about 11k in my previous jobs 401k that I have not rolled over to my new job. I read there are numerous penalties for taking the money out directly. What are some of the pitfalls of taking out a loan? Do I have to roll over the funds before I can do this since I do not work at this company anymore? What are my options with this money to use it for rent?  <response>: IME loans are only available while you work for the employer. If you no longer work there, you likely cant borrow. It would be a distribution which would mean taxes and penalties.You may be able to roll it over to a new employers 401k plan and take a loan from that plan if that plan allows loans. Note: not all plans allow loans. 