401k Hardship Withdrawal – Can you use it to pay off existing 401k loans, then withdraw it again? : personalfinance


So I know that this seems insane, and i just want to know if it is possible to do.

I currently have 2 401k loans for small/medium amounts.

I currently qualify for a hardship withdrawal.

Could I theoretically:

1) use a hardship withdrawal to take money out of the 401k and use that money to pay back the loans.
2) then remove it again immediately after to use for hardship.

The downside I figure is that it would mean I would be taxed on everything I completely removed. But If I am willing to be taxed on that, is this something i can do to eliminate the loans? Or are there any measures that would prevent this?



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