RoadToRiches
Familiar Member
Formerly "indebt"
Joined: Jan 4, 2011 11:08:00 GMT -5
Posts: 965
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Post by RoadToRiches on Mar 30, 2011 13:09:50 GMT -5
If a person takes out a loan on their 401k and quits their job, they have 90 days to pay it off in full or they will be taxed more, correct?
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Deleted
Joined: May 2, 2024 18:40:35 GMT -5
Posts: 0
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Post by Deleted on Mar 30, 2011 13:11:02 GMT -5
I beleive a company could write their plan differently, but that is standardish (although 90 days seems like a long time).
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azphx1972
Familiar Member
Joined: Mar 2, 2011 22:08:36 GMT -5
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Post by azphx1972 on Mar 30, 2011 13:13:45 GMT -5
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telephus44
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Joined: Dec 23, 2010 10:20:21 GMT -5
Posts: 1,259
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Post by telephus44 on Mar 30, 2011 14:34:45 GMT -5
I believe it is typically 60 days. If it's not paid back, it's treated as a distribution and you will owe standard taxes plus a 10% early withdrawl penalty.
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Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
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Post by Plain Old Petunia on Mar 30, 2011 15:16:36 GMT -5
It would also be due if they are fired.
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qofcc
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Joined: Dec 20, 2010 13:30:58 GMT -5
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Post by qofcc on Mar 30, 2011 15:23:50 GMT -5
There are some plans that let you keep making monthly payments, but it's not typical. The rules should be in your plan documents. If the rules are unclear, why don't you call the plan provider and ask how they handle it? You should be able to get an answer from the company that manages your 401K and shouldn't need to speak to your HR department.
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