Thread regarding Wells Fargo & Co. layoffs

401k loans after layoff

Don’t hate me. I’m sure it’s been asking before. What happens to the loans when you get laid off?

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Post ID: @OP+1jx43v5jt

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You have the term of the loan as originally written to pay it off. During your 60 day working notice, the payments are deducted just as if you were full time. After the 60 day working period you set up a monthly ACH payment on Empower's site drafting funds from a savings or checking account you control. It's automatic at that point. No need to repay a balloon payment or penalty. You're good.

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Post ID: @n7+1jx43v5jt

401k loans are a bad idea

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Post ID: @je+1jx43v5jt

@bj Actually, you may be ok if you turn 55 or older. See info on the “rule of 55” here: https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55#

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Post ID: @df+1jx43v5jt

I hate you, but it has nothing to do with your question. Ya know, just always hated you, for no specific reason. Bye!

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Post ID: @cg+1jx43v5jt

You have to pay it off or it becomes immediately taxable along with a 10% penalty if you are under age 59 1/2.

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Post ID: @bj+1jx43v5jt

Time to sell stocks or get another loan? You still have money right?

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Post ID: @b2+1jx43v5jt

You'll get a call from Empower and they'll discuss your options, such as continuing to make payments or converting it into a withdrawal and taking the tax hit.

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Post ID: @a6+1jx43v5jt

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