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Asked 1/26/2012

If I took a loan from my NC 401 K Plan, do I have to pay taxes on it?

I borrowed $2000 on Oct 10, 2011 from my NC 401 K Plan. As long as I am paying on the loan, do I have to pay taxes?

 
 
 
 
 
Answers

Answer 1/1 - Submitted 1/26/2012

Taking a loan out isn't income to you, and is not taxable. It doesn't matter if it's your 401k or from a finance company.

You only owe tax when you take a distribution that is not repaid.

 
 
 
 
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