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Author: IreneRose Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 118614  
Subject: 401K Loan for home Date: 11/14/2000 6:24 AM
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I borrowed from my 401K to purchase a home. My 401K plan states that when you leave the company the loan becomes due and payable. I know that usually means either you pay off the loan in cash, or a taxable event occurs. (at least that's what I thought.)

A friend of mine is telling me that because I used the loan proceeds to pay for a home, there is no taxable event if the loan isn't paid back when I leave. Could this possibly be true, or is she full of beans?

IR
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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 41756 of 118614
Subject: Re: 401K Loan for home Date: 11/14/2000 7:11 AM
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A friend of mine is telling me that because I used the loan proceeds to pay for a home, there is no taxable event if the loan isn't paid back when I leave. Could this possibly be true, or is she full of beans?

Since she's a friend, I'd suggest different wording, perhaps "you've been given bad information." Ask her for a citation.

TMF ExRO
Phil Marti

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