| ???? you want to take money out of a 401K, to pay off a loan in the 401K ?? I must be missing something somewhere.....
You merely don't pay for the loan ( notify them) they view the loan as a distribution, you will pay your normal tax rate. 25 to 50 percent depending on your income and tax status.
Just give the Admin a call of your plan and let them know you want the loan changed to a withdraw. No need to take money out, to pay it off. |