Sheldon explained the point on having to repay the loan immediately or face early withdrawal penalties and income taxes. That is the biggest risk with this option I feel.

One thing not mentioned yet is that your loan isn’t on your credit report, at least it wasn’t in my case…

In the short term, if your job is stable, this is probably one of the lower cost of accessing a large amount of funds.

There’s also the 60 day rollover option as well with IRAs.