I am in a situation where I have been offered a different job, which is great move for me. About a year ago, I took out a 401k loan for $33,000 of which I have an outstanding balance in the neighborhood of $28,000. This leaves me with a 401k balance of $122,000. I am going to take this newposition and currently do not have the funds to pay this loan off. I plan on taking a $30,000 distribution for a down payment on a new house in my new city (this is not up for debate). My question is should I increase my distribution by $28,000 to pay off the 401k loan or should I increase my distribution by approx. $15,000 to just pay the taxes and penalties on it and move on?
