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June 5, 2019
Question

I took a loan out from my 401k does that count as a retirement distribution

  • June 5, 2019
  • 1 reply
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1 reply

June 5, 2019

A true 401k loan is not considered to be a withdrawal as long as you are current in your payments, and it doesn't get reported as income. If you default on the loan, then the balance is considered to be a withdrawal/distribution. That is reportable and taxable.