Is 401K Loan Considered Debt? 
When you borrow from your 401 -LRB- k -RRB- the amount of the loan will be deducted from any distribution from the plan along with any interest that was charged . You might be forced to take a distribution from you 401 -LRB- k -RRB- at a time that you didnt anticipate , such as the loss of employment , illness of spouse or relative or your own poor health . There are tax issues that should be discussed with a tax professional . 