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-   -   401K Loan Defaults (https://www.askmehelpdesk.com/showthread.php?t=204421)

  • Apr 10, 2008, 08:26 AM
    Nelly51
    401K Loan Defaults
    Hi - My husband and I had to default on our 401K loan of about $45,600. I'm figuring about 38 % for taxes? About $17,400?
  • Apr 10, 2008, 08:28 AM
    ScottGem
    If you default on the loan, it becomes considered an inservice withdrawal. So there will be a 10% penalty. The total defaulted balance will be added to your taxable income to determine the taxes you owe.

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