How Can We Help?
< Back
You are here:
Print

401k loan payoff while still at the company

Posted
Last Updated On
ByStevie

L1: 401k loan payoff while still at the companyHi, I have just received some unexpected cash and would like to pay off my 401k loan in full. I am being told that I must continue to pay off the loan out of my paycheck bi weekly and cannot simply payoff the full amount of the loan now…unless I leave the company. I have searched the internet and have found web sites that state that the 401k loan can be paid off in full at any time without penalty. Which is true and can you please point me to the section of IRS code so that I can explain this to my employers HR dept.Thanks,Stevie2009-12-21 14:11, By: Stevie, IP: [24.126.148.172]
L2: 401k loan payoff while still at the companyYou should start with your 401(k) plan Summary Plan Description – it will state the the terms of the loan including any payback options. While the code may allow for immediate payback, the plan may not. 2009-12-21 14:15, By: Gfw, IP: [216.80.125.206]

Table of Contents