Could I use money from my100% vested balance to pay off a 401k loan with the same investment firm?

I have a 401k loan and also a 100% vested balance with the same company under my 401k plan. Wanted to use the vested balance to pay the loan down and savings for the rest so i can be debt free on that front.

sorry you can not do it with out fees and income tax and you sure do not want that!!!

You can't take vested funds out of a retirement account unless you are of retirement age unless you want to pay taxes and penalties.

You will incur a 10% early withdrawal penalty, plus you will have to pay income taxes at your respective tax bracket rate. For example, 10k withdrawal =10K(.9)(.72)=6,498. This is by far the worst possible way to handle paying off your loan, unless it is absolutely necessary. Not only are you being penalized, but you are losing the compounded interest from your 401k.

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