How do loans off the 401 get repaid if you chose to leave?
Do you have to pay it out of your final check (s) or does it come out of the sum of the 401 at the end?
Thanks
4 replies (most recent on top)
I am in this situation and pay my loan via autopay now. It’s a non-issue
Recently left with an active 401k loan. You can contact Voya to continue monthly payments through the original duration of the loan. It will be bank direct withdrawal instead of paycheck withholding.
It's according to if you do something with your Voya account.
If you don't touch it, you make monthly payments.
Or you can pay it off.
Or if you decide to roll your money elsewhere, then it will be paid off with your funds before the rollover.
Good luck
Way I interpret it you need to pay it within an allotted time or it comes off your total and you get taxed plus the 10% penalty if you’re under 59 1/2 or so
Godspeed. Pulling the plug on my 15 year career when rto hits and need to pay mine back before then