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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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.
401k loans are a bad idea
@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#
I hate you, but it has nothing to do with your question. Ya know, just always hated you, for no specific reason. Bye!
You have to pay it off or it becomes immediately taxable along with a 10% penalty if you are under age 59 1/2.
Time to sell stocks or get another loan? You still have money right?
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.