Hello!
so I have a 401k loan for 15,000. I have 25,000 left in my 401k. I just got laid off from my job....
i called and asked what to do and how to repay the loan , but they were not very helpful and I still have questions. They mailed me a letter that says I can repay it by November 20, or December 20. If I repay in December it is an extra 100$.
obviously, I can’t afford that right now. My question to them was what if I can’t repay it by December 20? She told me they would report the earnings to the irs and I would have to pay the taxes.
Does that mean that for my income tax I would have to pay the 15,000 plus the tax. OR does that mean they will include the 15,000 as income I earned on the income tax, but I would only have to pay the taxes?
thaanks for your help!!
