Posted on: 20th Nov, 2009 01:21 pm
I am a 44 year old male. I took a 401k loan of 50k and lost the money. This was a 30 year loan. I want to pay back the loan from my 401k but it is not possible. I have 66k left and dont know if that will cover the debt. I have no other savings to pay off the loan. My pay check is currently paying into the loan but I need the income to pay daily bills.
Hi rjm,
I understand you are in a difficult financial situation. But you will have to take another loan from your 401(k) account to pay off the existing loan. You will be subject to a 10% penalty and your current tax rate. However, I don't think it will change your situation much. You still have to pay off the new loan and the payments will be deducted from your salary.
Thanks,
Jerry
I understand you are in a difficult financial situation. But you will have to take another loan from your 401(k) account to pay off the existing loan. You will be subject to a 10% penalty and your current tax rate. However, I don't think it will change your situation much. You still have to pay off the new loan and the payments will be deducted from your salary.
Thanks,
Jerry