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401(k) loan & 72t

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Byrick

L1: 401(k) loan & 72t Hi, I am new to the website. If I have had a hardship withdraw from my 401(k) and now paying back the loan monthly, am I still be able to either stop paying back the loan or do a 72T withdraw on the remaining balance? If either option is possible, what is the best way to do it? 2007-03-22 07:22, By: Rick, IP: [76.199.7.97]
L2: 401(k) loan & 72tHi Rick,
I think in order for anyone to comment on your situation, I thinkthey will need more info. Here are a few things that would help:
Are you still working for the company where you have the 401k and the loan? How old are you? Are you planing on leaving this company? Also–If you are still with the employer, I think they most plans will not allow “in service” withdrawals from their 401k plan, especially if you are under 55.
From my limited experience with 401k loans that were done for employees at the company where I worked, I have seen thatIF the employee takes a loan, and either quits, retires, or gets terminated before the loan is paid back, after a short payback window is offered, thecompanywill issue a 1099-R (I think) declaring the remaining balance of the loan as a taxable withdrawal from your plan. IF the withdrawal is bewfore age 55, it may also have an early withdrawl penalty..I am not sure. That may not be the case for a hardship loan, butonce you supply more info, someone more knowledgeable than me can probably help you. KEN2007-03-22 08:23, By: Ken, IP: [151.199.46.209]

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