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URL:  http://boards.fool.com/greetings-tahoepiratefan-and-welcome-you-wrote-14792241.aspx

Subject:  Re: 401k Loan and Termination Date:  4/18/2001  1:42 PM
Author:  TMFPixy Number:  29190 of 76081

Greetings, tahoepiratefan, and welcome. You wrote:

I recently got fired. I have an outstanding 401k loan. How long do I have before I must repay the loan without adverse tax consequences? I am of the belief that if I do not repay the loan within a certain timeframe that the IRS considers the balance to be a distribution, and subject to income tax and penalties as I am not 59 1/2.

Sorry about your job loss. As to the loan repayment, that's up to the plan, so your former HR folks will have to tell you what the deadline is. Typically, it will be around 90 days before the loan is called in default. That's when it becomes taxable and subject to the early withdrawal penalty as well.

Regards..Pixy
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