Seriously. They are working for a huge name-brand tech employer, and have the best chance of getting a new job (see the LinkedIn replies), but oh yeah, if they run out of severance, and have no emergency fund (because reasons), and their shares are temporarily locked up, whatever will they do? Take out a 401k loan like a plebe?
You can't take out a 401k loan if you don't work there any more. In fact, that's one of the major drawbacks of 401k loans. If you leave employment, you have to repay the loan within a set time period, or treat it as a disbursement.
That said I agree, complaints about "what will happen when my severance runs out!" did elicit a bit of an eye roll.
You technically cannot take out a loan against your IRA. You can do a withdrawal and payback though - I believe there are some tax considerations / early withdrawal risks
401k “loans” are a misnomer. There’s no underwriting or leverage. It’s an unpenalized withdrawal with payback (as opposed to regular early withdrawals, which are penalized).
