unless you husband works for shallwe cheatum and howe i would agree with what he has been advised -- all depends on the companies plan -- since this is an important part of you investement future you need to get a copy of the plan and read it!!!

loans are up to each individual 401K plan set up between your husbands company and the plan trustee/administrator, can only roll into a IRA once your husband is no longer employed

as for where this money is located, have him check with his HR department either by calling them or if he has a work intranet site through their site (or retirement benefits section)
most companies seem to hold their 401K plans through fidelity (www.fidelity.com) as it's one of the larger plan trustees but there are a lot of different trustees so.....

Typically it's up to the employer if you can borrow from a 401(k), and you generally cannot roll the money out until you quit or get fired.

You are not automatically entitled to a 401(k) loan. This is allowed only if it is incorporated into the plan documents. Also, rollovers out of the 401(k) do not have to be permitted as long as the employee is still with the employer. Why would you want to take a loan from a 401(k)? If you can't afford it, don't buy it. The money is in the accounts on your statement. If you aren't getting statements contact the provider.

You can't roll it over while he's still employed. After he quits or is let go, then they would have to let him roll it into an IRA if he wishes.

While businesses can allow loans from a 401(k), it's not mandatory.

You are required to get a quarterly statement from the financial company that handles the 401(k) showing where the money is.

Each 401(k) plan can allow or not allow loans. Rolling the 401(k) into an IRA is ONLY allowed after you leave the employer. The money should be invested in mutual funds that you selected when you enrolled in the plan. You should receive statements at least quarterly that should your balance and how it is invested.

One of the most common retirement plans is the 401 K. In a 401 K, some amount is deducted monthly from your pay check. The money is tax deferred and so you do not pay taxes on the amount invested. Usually there are various investment choices like mutual funds, stocks, bonds etc. In some cases, the employer will match the employee’s contribution to the account, though these instances are decreasing.
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