Tuesday, November 15, 2011

Tax implications on tapping on my 401K?

thomas m is mistaken, a 401(k) plan CAN'T allow loans after you leave the job. Since you are unemployed, I conclude you HAVE left the job. If you were still with the company and took a loan from your 401(k), and then left, the balance would be due in full within 60 days, or be treated as an early withdraw. I recommend nearly anything over an early withdraw. If you do take the withdraw, you will pay a 10% penalty plus tax as regular income.

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