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So sorry you are going through so much employment, financial and emotional strain while confronting cancer too. You are fortunate in having options to help get you thru this time of turmoil. If you are just facing a couple of month shortfall, maybe it would be best to just take out a line of credit with your bank or credit union. You could pay it back when you finally get access to your other funds. If you take out a loan against your retirement savings, it could create a problem when you leave your current employment. Any money you've borrowed has to be repaid when you terminate or it will be considered a distribution. Another problem is that money you borrow from a 401k is pretax money. The money you pay back is after tax money. While you pay yourself the interest on such a loan, you pay tax twice (the after tax I mentioned plus the tax you pay when you retire and begin taking distributions). To assist with cash flow, could your wife place her 401k money in an IRA and take it out monthly under the 72t provisions?
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