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    TAKRUCKE's Avatar
    TAKRUCKE Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 10, 2007, 07:18 AM
    Taxes due on 401k loan
    My Husband's 401k Loan Went Into Default How Can We Fiqure Out What The Federal Taxes Due On The Loan Will Be?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Feb 10, 2007, 07:31 AM
    Can you explain default? Usually 401(k) loans are paid thur payroll deductions. If the employee leaves without repaying the loan, then it is considered a withdrawal. The loan balance would then be subject to 10% penalty and the amount added to your taxable income for the year.

    To figure out what you would owe, you have to do your full return.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 10, 2007, 11:19 PM
    Scott has covered it all!
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