Archived 401k loan question

[rjt44]

If I have a 401k loan that has a remaining balance but end up leaving the company...what happens? Do you have to pay it out when you leave or do you take a 401k penalty when leaving company before rolling it over?

Also, what happens to your pension? I have over 15 years with company and wanted some feedback before potentially calling pay and benefits line.

Thank you.

 

[Rarejem]

If you have a loan you will have to pay it off. If you don't, you pay the penalty. Details are on the myBenefits page under your loan details. Unsure about the pension.

 

[tgtfla]

You will owe tax plus 10% penalty if you are younger then 59 1/2 unless you pay it back.you should call about your pension ,they are very helpful and you will get then most accurate details of your options,congrats on lasting 15 years,good luck with your next endevour.

 

[Hardlinesmaster]

You could of retire from spot too.

 

[Yetive]

You keep the pension. I think you can take cash payout for the pension, or leave it for retirement.

 

[rjt44]

Thank you everyone. I believe the pension is 10% hit if taken before 59 1/2 as well. I’ll call about loan penalty. I was hoping to roll over the 401k less the money still owed and a penalty on top of that but nothing owed out of pocket additionally. Otherwise I’ll have to continue on until financial situation becomes more stable again.