Need Advice

I currently have around $5k in 401k and I took out a loan around a year ago, and I still have a loan around $1300 that I still have to pay back. I am leaving my current job and moving to work at USPS in a week. But I currently need money to pay off some debts. Is it possible to take the $5k out and pay the loan off and keep the rest? I know there’s penalties and it’s going to be considered as my income, but I need money atm. What are the best options for me as of now?