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what if i take out a loan and dont pay it back then i cash out a year later what will happen

Posted on: 21st Jan, 2010 05:16 pm
i took out a loan 2 years ago on my 401b but never paid it back,and i lost my job this year so i cashed out my 401b what percent are they going to take ? the loan was for $1400.00
Hi dignaziob,

"i took out a loan 2 years ago on my 401b but never paid it back, and i lost my job this year so i cashed out my 401b what percent are they going to take ? the loan was for $1400.00"
Do you mean you took out a loan from your 401K retirement account? If you did, and then failed to repay the loan, it will be considered as an early withdrawal and it will be subject to taxes and a 10% penalty.
Posted on: 22nd Jan, 2010 05:11 am
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