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Asked 2/8/2011

I am about to retire. I took out a loan first time home buyers loan from my 401K account. The Loan is for (10) years but I am retiring. So how do I pay back the remain balance of the loan?

I am retiring. I took out a loan from my 401K account, it was for (10) years, for a down payment on a house. I have paid back about $3,000 from payroll deductions. But since I am retiring how are the arrangements made for me to pay the loan back?

Furthermore, If the loan was for (10) years, I have 7 more years to go? When I tranfered my 401k account to Fedility. My company stop taking the loan monies from my payroll. Now I am in a bind because I am retiring in March. Should I pay up the loan balance before March 2011? If the loan goes into default, will I be require to pay taxes on the balance of the loan? Will my former company take the balance of the loan from my retirement account? Will I be broke after all of this?

 
 
 
 
 
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