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I am considering taking a 401K load. Only pretax money has been contributed by myself and my employer. My employer offers a 401K ROTH option also - which I have not contributed to. I only put dollars into the pre-tax part of the 401K plan.

I asked the following question of my company's 401K manager regarding a loan I am considering:

Q: "Since my loan will be paid back with POST tax dollars, do the loan repayment dollars get put into a Roth 401K (i.e.POST tax) or mixed in with pretax dollar monies ?

When I begin making withdraws from my 401K at retirement, are the monies used to repay the load treated differently from the withdrawal monies that were pretax contributions ?"

The response was:

A: "The repayments go back in the same way that they came out. For example, you take the loan and it comes out pro-rated from multiple pre-tax sources, like Employee Pretax, Employer Contribution, etc."

That tells me since I only have pretax $ in my 401K, the post tax dollars I use to pay off the loan will be taxed again when I retire and take the $ out.

This does not sound right - or I am misunderstanding this completely.

Anyone have / ask the same question ?



**** think I found the answer - here it is - for others who are interested -
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