401k withdrawal rules depends on your age for as long as you are no longer an employee of the company who administered your 401k plan. 401k limits to contributions for 2010 and 2011 are still $16,500 and $22,000 for plan holders aging 50 and up ($6,500 catch-up limit).
But to avoid unnecessary fees by borrowing from 401k account, you need to observe federal laws.

There may also be required minimum loans and maximum number of loans per year so it is best to read the fine print of your 401k. It is better to have loans with your 401k rather than to cash it out because of the considerable amounts of penalties incurred in doing so. You can borrow as much as half of your principal amount from your 401k ($50,000 accumulative loans per year).

But if you really want to do so then you should have a word with the human resources department of the company that administered your 401k.

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