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Guest nebmedman
Posted

When borrowing from your 401k, does this "loan" appear on your credit reports?

Thank You

Posted

No it doesn't-

Reason- you are borrowing from yourself and if you default on the loan repayments- the outstanding loan balance and interest will be reported as taxable to you. You would then owe the IRS income tax on the amount

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

Guest nebmedman
Posted

Thank You!

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