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Asked 7/29/2010
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I had a 401k. I borrow against for taxes. If this is my money don't Ihave the option not to pay me back if I resign. I had a 401k plan before I resigned from a previous job, did not have any place to move the money i had a loan taken out to help pay for taxes, it was also paid off I had about $11,000 when I got the check it was for less than 1/2 of the amount even through I told them not to pay the loan since I was paying myself. I really never unstood this |
Answer 1/5 - Submitted 7/29/2010
Answer 2/5 - Submitted 7/29/2010
Answer 3/5 - Submitted 7/29/2010
Answer 4/5 - Submitted 7/29/2010
You can choose to default on the loan. The remaining balance becomes a distribution to you, subject to income tax, and possibly the 10% early distribution penalty.
They generally don't "pay back the loan" when you leave a job, though you might be given the option to do so, from your own pocket. If you received a check that was less than you expected, you need to get some numbers from the plan administator. Taxes withheld, vesting percentages ... both could be a factor.
Answer 5/5 - Submitted 7/30/2010
This is an interesting situation. I would contact your old employer to see what is going on with this situation. I know they most likely took out fees and taxes and such. Perhaps this is the problem. Speculation will not help you, I would contact them and see what is going on with this situation.
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