D.
The employer absolutely has to follow the plan documents as well as IRS regs. This document outlines whether or not loans can be made. You should be able to take the money out if you are willing to accept the early withdrawal penalty and you're fully vested.
Aside from that there should be some investment choices within the plan that you can move the money from riskier to safer funds. Some plans will only let you move so much per month or quarter. You can also reduce your current contributions to zero % or redirect those funds into a safer investment allocation.
Even if you quit or get fired, taking an early distribution without rolling into some other 401k plan or IRA will have stiff tax consequences.