401k loan or withdraw

[Gabriel Benavidez]

So I’m sorta in a dilemma I’m currently under contract for my fourth rental and I was planning to take out another loan from my 401k to put as a 20% down payment which is around 38k but I currently got news that this company that I had applied for 3 months ago are interested in interviewing me and perhaps offering me a job which would increase my income and will have better benefits for me and it’s an overall better company for me long term than my employer that I am working with now. So the issue is that prior to knowing about this I got under contract with the mindset that I will be working with the company that I am with now until I pay off the 401k loan off and now that I know about this other job opportunity which is a probability that I might get my questions is would it be better just to withdraw the money from my 401k and get penalize and taxed or just go ahead with the loan and if I get offered the new job just take the hit later when tax season arrives. Or whats another way can I strategies this that I am still able to get my fourth rental and have the green light to switch employers. I hope this makes sense. Thank you.

[Tom S.]

@Gabriel Benavidez  Personally I would hold off on the 4th rental until your employment situation is figured out.  Deals will always be out there.  The taxes and penalties from 401k early withdraw can be near 40%, that's a huge amount of money you would be wasting.