Archived 401k loan help

[slinesslave1]

so i am leaving spot but i still have a 401k loan of a few thousand left to pay off.

im confused the website says i owe the money asap but i thought i read somewhere that they will take it out of whatever you have in your 401k and anything left will be what you get back?

 

[Hardlinesmaster]

You may have 90 days to pay it back.

 

[Retail Girl]

No...you can't take it out of the 401K to pay back the loan on the 401K. That would be like taking $20 out of my wallet to pay back what I need to put back in my wallet.

Loans on 401KS need to be paid back. I would contact the tmsc, but my guess is that it is dus immediately.

 

[Retail Girl]

Alright, I was wrong. It looks like you have 60 days to pay it back in full. After that you will pay a penalty for early withdrawal as well as owe the IRS taxes on that money.

 

[slinesslave1]

ok so what about my 401k of whats in it already can i take it or do i have to do a roll over?

 

[Hardlinesmaster]

ok so what about my 401k of whats in it already can i take it or do i have to do a roll over?

Talk to tmsc or hr, without delay. Go to your bank for other options to avoid tax charges. Roll over is best option after you pay it off.