R&W Editor No Comments

Beware: Retirement Plan Loan Defaults Can Be Costly

Economic fallout from the COVID-19 crisis may cause some cash-strapped individuals to default on loans they’ve taken out from company qualified retirement plans, including 401(k) and profit-sharing plans. Defaulting on a plan loan will cause adverse tax and retirement-saving consequences. Here are the details.       

Read more
Christine Hradsky No Comments

Defaulting on Retirement Plan Loans Causes Taxable Distributions

Retirement Plan Loans

Not repaying retirement plan loans can lead to major tax consequences.

Want to borrow money from your retirement plan? Not so fast. Retirement plan loans can be a viable way to get money in a crunch, but you need to follow the rules about repaying them. If you don’t, it could lead to unfavorable tax consequences, as two taxpayers recently learned the hard way in U.S. Tax Court. Read more