Had loan out on 401k for 23000. then in june cashed out 60000 and paid back that loan do i pay tax on 60000 or can i subtract out the 23000?

Other answer:

Dawn:
Not sure why you felt the need to call me a moran, I know you don't pay tax on loan. My question was can I subtract the loan amount from the $60000 CASH OUT (which is taxable). And yes I may have to consult a tax consultant but I was hoping someone on here may know and would be kind enough to give me some advice, so please if you don't know the answer thats fine but did you need to be so rude?
Andy L:
This is complex but can occur. "Cashed out" is a problem. "withdrew" makes more sense.
"Cashed out" generally means to close it out entirely but paying back the loan means an account balance.
The loan is not taxable. The withdrawal is income and can involve a 10% penalty as well. These are separate events and treated as separate.
https://www.irs.gov/retirement-plans/pla…

You do not just subtract the $23,000.
You will pay tax on $60,000 and need to pay a 10% penalty ($6000) if not in an exception withdrawal.

Add: It gets complicated because you cannot withdraw the entire balance until the loan is paid off, so complicates the accounting, especially with withholding for taxes.

Maris:
Hello everyone i'm Maris Rooney i just want to testified on how i got a loan from a God fearing woman called Mrs Elizabeth pls do not fall in the hand of scan contact Mrs Elizabeth and get your Loan Via mail{elizabethperryloancompany@gmail.com…
Frank:
You don't pay tax on LOANS moron. It is NOT INCOME. If your 401k is "intact" in a short period of time…less than a year…then the tax consequences might be minimal….consult a TAX consultant.

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