I Have An Outstanding 401K Loan. My Employment Is Being Terminated As Part Of A Downsizing. If I Do Not Pay The Loan Back And It Defaults, Will I Be Subject To The 10% Penalty Even Though My Job Was Terminated. I Am 58 1/2 Years Old. Can You Help?

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nettie Profile
nettie answered
That is a question for your human resource Dept. But if the money is taken out of your pay,I imagine once you are no longer working for them the payments will stop,I don't know if the penalty will be charged but I would not sit by and allow that to happen and they are terminating me,but to to human resource and get clarification of what will take place doesn't seem reasonable,but everyone is out to make money no matter whose expense...good luck   
Anonymous Profile
Anonymous answered
My company is down sizing, and I expect to be terminated. I have 32,000 in my account. How much can I expect to walk home with, after taxes and penalties ? Does anyone know ?

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