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Asked 4/8/2010

Taking a loan out on my 401k

I want to take a loan out of my 401k , but I plan on retiring in approx. 1 year , how is this loan paid back if I retirer, will the balance be taking out of my total value of my plan ?

 
 
 
 
 
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Answer 1/1 - Submitted 4/9/2010

If you leave employment before the loan is paid off, the balance remaining becomes a distribution to you. It is subject to income tax (and penalty, if you were under 59 1/2).

 
 
 
 
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