I have just turned 591/2 and have a 5,000 dollar loan from my 401k... can I withdraw monies to pay this loan off... and how much will I be taxed if I do?

Mickey Huddleston

?? 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.

Who has info about my 401k