I submit that my idea allows all the above to occur. Most people with significant 401K’s have good credit, many are underwater, most that are under water would love to refi, the loans/withdrawals(your choice) are in essence interest free, as the interest goes back into the 401k-minus the yeary maintenance fee(if a loan occurs). I personally would not benefit a lot, but it would give me the option to withdraw money so that I could invest in specific stocks(and not be limited to what’s in the plan), and maybe the best reason of all is it would be by choice, if you don’t want to take it out, then don’t. It would also be a tax cut because the IRS would not get that 10% penalty fee. Ok I guess Hobie’s idea would not be met
