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Subject:  Re: Defaulting on 401k Loan Date:  7/20/2012  7:47 PM
Author:  ziggy29 Number:  70877 of 88498

>> The particulars of that issue depend completely on the provisions of your employer's plan. Some plans allow you to continue making payments even after you leave your job. Other plans have requirements to pay back the loan, often within 30, 60 or 90 days. But it's all dependent on what the plan rules say. <<

Definitely true. But in pretty much all cases, defaulting on the payback agreement (whatever it is) may convert the loan balance into a taxable distribution.

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