A reader of Ask NJ Money Help asked:
Does the change for paying back 401(k) loans apply to me as I left my job in January 2019? If so, how long would I have to pay it off? I was told it defaulted and was being reported to the IRS as a distribution and no taxes were withheld. I received my 1099R last month. My 401(k) is still in the company.
The answer is yes, there were changes to when 401(k) loans must be repaid, but it’s all based on dates.
This was a follow-up question to a response we gave to a reader on February 22, 2019. Read the original question here: Have Rules for 401(k) Loans Changed?