Bonnie Sue eden Posted October 2, 2019 Posted October 2, 2019 Dropped working may10 2017; had $18000 401k loan; defaulted this year; no earned income at all this year just WC; how much taxes will I pay on defaulted loan?
Planophyte Posted October 2, 2019 Posted October 2, 2019 Depends on your age. You are taxed at marginal rates regardless but if you are under the min. distribution age, you pay an additional 10% penalty
pmacduff Posted October 3, 2019 Posted October 3, 2019 one more comment - if you are "totally and permanently" disabled, even if under 59 1/2 you may not have to pay the additional 10% penalty. You should check with your tax advisor.
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