most 401k's have restrictions....ask him if he withdrew money from the 401k or he took a loan out?? Most 401's offer a hardship withdrawl under certain restrictions..but this method is taxed heavily..on the other hand..most will let you take a loan out for up to half the value of the account...and you just pay yourself back..they only allow a certain number of loans over a period of time..no tax penalties for the loan..