Search SEARCH

What happens to 401k loans when you change jobs?

If I am planning to leave my job in the near future and I have 30k in my 401k and approx. 12k in loans, how will the loans be repaid? Do I pay the taxes at year end? Also what if I decided to cash out the rest?

Asked By: Flying J - 6/20/2007
Best Answer - Chosen by Asker
It depends on the requirements of your 401(k) plan. Some 401(k) plans allow you to continue to make payments on loans after you leave your job. Others require you to pay back loans within a certain number of days (often 30, 60 or 90) after you leave, or the loan will become a distribution... More
Answered By: aj485 - 6/20/2007
Additional Answers (3)
You need to pay back the loan before you leave or you will be charged taxes as though you received a distribution. Generally that is state tax, federal tax and a 10% penalty on top. If you want the rest of the money, I would suggest rolling it over into another qualified plan, such as an IRA. That way you will avoid... More
Answered By: Angie - 6/20/2007
 
aj485 has it right...only thing I would add is that your new job may allow a loan rollover. It's not well publicized but it's legal to do. That would keep you from owing taxes...you'd simply start making payments at new plan (you'd also have to make up missed payments!). If you cash out the rest you'll actually... More
Answered By: digdowndeepinseattle - 6/22/2007
 
You get the option to leve it there or move it with you. You may also close it out and get a penalty or put it in an IRA. You have the choice, your past job will let you know.
Answered By: Pepper - 6/24/2007
 
Sponsored results
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Jobs.Quick-com
Click. Search. Apply. Free!
www.JobDiagnosis.com
Jobs hiring near your local area. Part-time, Full-time, Work at home.
www.HiringLocally.com
Sobre 287 Trabajos en tu area. $15-87/hora - Aplica Ahora.
JobsToLatinos.com

Other Career Questions

What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
3 answers - Asked By: drop pants not bombs!.♥ - 3/2/2010
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
4 answers - Asked By: bayebd24【ツ】 - 11/21/2007
Hi ok im 19 and about to start college to do an acess course into a university. Ive been browsing through all the courses and im tottaly stuck! I thought politics but im scared ill end up with some r...
1 answers - Asked By: roseparkerly - 1/26/2009

Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.

Popular Articles

Best-Paying Work-from-Home Jobs Article Rating
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook Article Rating
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
For Employers: Post Jobs | Search Resumes | Advertise
About Monster | Work for Monster | Advertise with Us | AdChoices | Partner with Us | Investor Relations | Social Media
Terms of Use | Privacy Center | Accessibility Center | Help | Security | Contact Us | Sitemap | Mobile
©2014 Monster - All Rights Reserved U.S. Patents No. 5,832,497; 7,599,930 B1; 7,827,125 and 7,836,060 MWW - Looking for Monster Cable? - V: 2014.1.40.24-306
eTrustLogo