Ask Experts Questions for FREE Help !
    mmhudd's Avatar
    mmhudd Posts: 1, Reputation: 1
    New Member

    Jul 16, 2007, 03:32 PM
    401k loan and pulling momey out of a 401k to pay the loan off
    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
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,305, Reputation: 7692

    Jul 22, 2007, 08:24 AM
    ?? 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.
    HollyB2020's Avatar
    HollyB2020 Posts: 1, Reputation: 1
    New Member

    Dec 26, 2008, 06:04 AM

    Who has info about my 401k

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

401K Loan vs. Home Equity Loan [ 3 Answers ]

I need $50,000 for a kitchen remodel. I can get a 401K loan 5 yr term 9.25 interest - total payments add up to 62,000 or so with a monthly payment of roughly $1,050. That payment is is tough on my current budget so I was considering a Home Equity Loan with a longer term. I know there are a...

Loan against 401K [ 1 Answers ]

My 401K is still with :confused: my employer for one year and a day after my resignation. How can I obtain a small loan (3K). The year is almost up but I need the cash now!:confused:

Loan against 401K [ 1 Answers ]

Hi I found a property that I want to invest in, it's a foreclosure, I want to fix it up and maybe retire too it, I have a home with a small mortgage, and I have some savings for vacations and emergency's, I think the home I'm looking at might have to be paid in cash, $20,000. I have Est:...

401K loan [ 1 Answers ]

Can a 401K plan be used as collateral for a personal loan from a bank or other lending institution?

401k loan [ 2 Answers ]

My husband took a LOAN for $3000 from his 401k in August. He has and will continue to have approx. $15 a week taken from his paycheck over a 5 year period. There is an interest rate of 9.2 percent. He has not received a 1099-R. Should he have? How do I handle filing 2006 taxes? Thank You

View more questions Search