The company i worked for 11 years just fired me and i have a loan through them on my 401k plan. What do i do? I cannot pay them. Can i close this 401k and deduct the money owed them?
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Very simple, you will be billed and must be paid in terms like any other loan. They CANNOT deduct the money you owe from any monies owed to you.
answered 4 months ago
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Look for a job and find a new one right away. Start making your payments so you don't get behind or they will come after you and start to bother others you know. Also, maybe you can make special payment arrangements you can at least try. Good luck.
answered 4 months ago
I don't know who these other people are investing with but when you borrow against your 401k, you make payments back to yourself with interest. If you get fired and don't roll your balance into an IRA or other plan, come taxe time, you will have to pay the taxes on what you were given. If you close your account they'll withhold 20% for taxes, you'll be fined 10% for closing the account. The smart thing to do is call the plan you were on and see about making payments until you enroll into another plan. Its your money and no one will bother you except uncle SAM the following tax year cause he wants his cut.
answered 4 months ago
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