[header] How to avoid penalties for early retirement withdrawals [title] Check if your plan allows loans. [step] The law allows employer-sponsored retirement plans to extend loans, but it is up to the plan whether or not it wants to allow loans. Accordingly, you should check to see if your plan allows loans to be made. 
If the plan administrator agrees to give you a loan, then you can take it without the 10% penalty. [substeps] Some plans might allow you to take a loan but limit what you can spend the money on.