if you have a 401k loan outstanding, do you need to pay it back withing 30 or 60 days or are you allowed to keep making payments on it if you are no longer with the company?
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They were closed when I posted, but I called in the AM. :)
Seems like an odd question for this board. I realize if it is posted on the internet, it must be true but I would think for something like this, it would make more sense to contact HR or your 401k administrator as a more authoritative source of information even if the commentators stayed at a Holiday Inn last night :-)
THANK YOU ! that first response scared the crap out of me!!! I'll call today to verify.
You have two options with your 401k loans. You will receive a coupon book in the mail for the remaining payments owed on the loan which you can continue to remit or you can allow the loan to go into default and at the end of the year you will receive a 1098 which you must report as income.
I thought the minimum amt of days by the IRS was 60? was hoping you could keep paying it but i know that varies by company.
You have 30 days to pay it back, otherwise it'll be reported as income. You will pay the income tax on it and will have to pay a 10% penalty.
Source: happened to me in March