within 60 days
In this regard, do you have to claim a 401k loan on your taxes?
Any money borrowed from a 401(k) account is tax-exempt, as long as you pay back the loan on time. And you’re paying the interest to yourself, not to a bank. You do not have to claim a 401(k) loan on your tax return.
In this manner, do you have to pay back Covid 19 401k withdrawal? In general, yes, you may repay all or part of the amount of a coronavirus-related distribution to an eligible retirement plan, provided that you complete the repayment within three years after the date that the distribution was received.
Similarly one may ask, does the interest you pay on a 401k loan go back to you?
Any interest charged on the outstanding loan balance is repaid by the participant into the participant’s own 401(k) account, so technically, this also is a transfer from one of your pockets to another, not a borrowing expense or loss.
What happens if you have a 401k loan and get fired?
Here’s the risk: If you’re fired or lose your job, you have to pay back the loan immediately. Typically, the remaining balance on the loan is taken as a distribution to pay the outstanding balance.
What is the tax rate on a defaulted 401k loan?
10%