401(k) loans are typically unavailable during legacy years, as most plans prohibit loans once you’ve terminated employment. Even if a loan were somehow available through continued part-time work, taking one would be financially imprudent at this stage of life.

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Your retirement accounts should now focus on distribution planning—ensuring funds last through your remaining years while accounting for required minimum distributions (RMDs), which begin at age 73. If you need money from your 401(k), take a standard distribution instead. You’ll pay ordinary income taxes, but you’ll avoid the complications of loan repayment on an uncertain timeline.

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During legacy years, financial planning should emphasize simplification and preservation rather than complex loan arrangements. Rolling 401(k) funds into IRAs may offer more flexibility for distributions, estate planning, and beneficiary designations. Consider working with a financial advisor to structure distributions tax-efficiently, potentially using qualified charitable distributions (QCDs) to satisfy RMDs while supporting causes you care about.

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If facing significant expenses, explore alternatives such as reverse mortgages, life insurance policy loans, or strategic asset liquidation. Your priority should be ensuring that your retirement savings sustain you throughout your lifetime, with any remaining funds passing to heirs or charities according to your estate plan. Loans simply don’t align with the prudent financial management approach appropriate for legacy years.