Smart 401k President Scott Holsopple was quoted in Kelly Greene’s “Ask Encore” column in the Wall Street Journal. In A 401(k) Borrower Can’t Benefit From Fund Losses, Greene’s experts responded to a question about accounting for 401(k) loan defaults when the fund has lost it’s value. Holsopple explained that, “If you can't repay the loan, it would be considered ordinary income on which you would owe income tax, plus a 10% penalty if you are under age 59½.” However, “even if you have a 401(k) loan that goes into default, it won't leave a bad mark on your credit, because you were borrowing from yourself,” he added. Read more.
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