Rolling out 401k with a loan
Aware that Loan amount will be considered as taxable income.
A client was told by his accountant that in doing so, it would be looked as if he defaulted on the loan and reported to the Credit Agencies as such.
Is this true?
Permalink Submitted by Alan - IRA critic on Tue, 2015-06-30 20:21
No. A 401k loan is not a debt. You are borrowing your own money.