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    Jaime Frechette's Avatar
    Jaime Frechette Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 1, 2009, 04:50 PM
    Business closed ,401K gone?
    The company my 401K was with closed. I took a loan against it last year. I just received a tax statement with the full amount of the 401K. Where is the balance? If I'm being taxed for the full amount, it has not been rolled over, and $ is due to me? Is there a penalty since I have not paid the loan back, and can't in the foreseeable foreseeable.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 1, 2009, 05:26 PM

    Funds from a 401K plan are held by a separate plan administrator so the funds can't be gone.

    The 1099 should have only been for the loan balance. If you terminate employmenr and do not pay the balance within 90 days then the balance becomes an inservice withdrawal and you will need to py taxes on it as well as a 10% penalty.

    The 1099 should list the plan admin and you can contact them to check the remanng balance.
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