- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Borrowing from your 401K
Posted on 7/10/13 at 10:22 am to LessofLes
Posted on 7/10/13 at 10:22 am to LessofLes
Yes, if you don't pay a 401k loan back, it gets treated as a 401k distribution which becomes fully taxable as ordinary income (+10% penalty if you are under 59.5 years old).
At that point, you no longer "owe" the money back. Loan is done.
Of course, on the other hand, if you pay the loan back as scheduled, it's like nothing ever happenned tax-wise.
At that point, you no longer "owe" the money back. Loan is done.
Of course, on the other hand, if you pay the loan back as scheduled, it's like nothing ever happenned tax-wise.
1
Posted on 7/10/13 at 10:53 am to JPLSU1981
quote:
Of course, on the other hand, if you pay the loan back as scheduled, it's like nothing ever happenned tax-wise.
Not exactly. You paid back your loan with after-tax dollars. That's a huge penalty.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News