Welcome! | Ask A Question

 
 
 
 
Question

Asked 1/19/2010

If a company closes down what happens to outstanding 401k loans?

I had a loan from my 401k plan. The company closed theirs doors and shut down the 401k. I rolled over the 401k to a new company, I am being assessed with the outstanding loan as income. Is there anything that I can do so I don't have to have the entire amount added as income for last year?

 
 
 
 
 
Answers

Answer 1/3 - Submitted 1/19/2010

That's no fun.

The loan portion of a 401k is an optional benefit employers may choose or not choose to include with their plan.

I have no idea how you can "undo" this, really. I'll be following this to see if someone else has a solution, though.

 
 

Answer 2/3 - Submitted 1/21/2010

The only option would have been to pay it back in Full prior to rolling it over. At this point you rolled the remainder, and the loan was considered money you already received. -- This is common, and they most likely withheld federal tax.. besides it counting as income, unless you asked them to take extra withholding before rolling, you will most likely have to pay the early withdrawal penalty as well. 'This would have all been outlined in your distribution paperwork, you pay it back in full before rolling, or it is income. Sorry.. no way around it now.

 
 

Answer 3/3 - Submitted 2/8/2010

I worked for a company for five years and invested in their 401k plan. I unfortunately went to prison for ten years after I got out the company was closed I would like to know what happen to the money that I invested in with the company .

 
 
 
 
Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

 
 
 

Related Questions (Ask a New Question)

 
Retirement homes.?

What type of degree is required to become an activities director or events planner in a retirement home setting? i am getting my bs in business with a certificate in gerontology (study of aging). do you think that degree will work for that type of job? what other jobs in this field would be available...

See Answers

 
Investing, do you believe that retirement homes, nursing homes, pharmaceuticals, and funeral homes ?

Do you believe that retirement homes, nursing homes, pharmaceuticals, and funeral homes would be good stocks to own. i mean the baby boomer's are retiring, they will most likely go to nursing homes by the thousands, and pass away around the same time as well. what would be good stocks for the small...

See Answers

 
Price of retirement homes in canada?

I am wondering about the cost of retirement homes in canada, especially ontario. the cost i am looking at would include meals and help with basic needs. it would be for someone that is able to get around but just needs help sometimes with laundry etc. any information of prices would be greatly appreciated....

See Answers

 
Related Questions
 

Retirement homes.? - What type of degree is required...


What type of degree is required to become an activities director or events planner in a retirement...

 

Investing, do you believe that retirement homes, nursing homes, pharmaceuticals , and funeral homes ?


Do you believe that retirement homes, nursing homes, pharmaceuticals, and funeral homes would...

 

Price of retirement homes in canada?


I am wondering about the cost of retirement homes in canada, especially ontario. the cost...

 

How can i find ratings / personal experiences of retirement homes in canada?


Hi there, i live in ottawa and am looking around for a retirement residence for my grandmother....

 

Have you started to look into retirement homes?


Monday i'm turning the big 22 and i keep telling everyone i need to start looking into...

 
 

See more 401k questions

 
 
 
 
 

Ask A Question

Ask a new question about
401k: