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401k loan

401k Loans Double-Taxed? Not so fast, conspiracy theory-breath

Is your 401k loan taxed twice? Even though it seems like it is, the fact is that it’s not. It’s actually the same as if you took out any other loan.

New Deadline for Rollover of 401k Loan Distributions

TCJA allows an extended period of time to rollover 401k loan distributions. This will help folks who have left a job with outstanding 401k loans

401k Loan versus Early Withdrawal

When you have a 401k and you need some money from the account, you have a couple of options. Depending upon your 401k plan’s options, you may be able to take a 401k loan. With some plans you also have the option to take an early, in-service withdrawal from the plan. These two options have very different outcomes for you, in terms of taxes and possible penalties. Let’s explore the differences. 401k Loan If your plan allows for a 401k loan, this can be a good option to get access to the money, for virtually any purpose. Being a loan, there is no tax impact when you take out a 401k loan. Plus you can use the money for any purpose that you need, at any age. As a loan, it must be paid back over the a five-year period (at most). You’ll pay interest on the loan, but since […]