Retirement tax questions

@chee58 

  to pay it back is not taxed.

to take out more to pay it off is taxed.

So it doesn't sound like a good move.

Your 401k has not been rebuilt.

You must meet the COVID-related conditions to have avoided the 10% penalty and have your tax burden over three years.

 

If you still have  or will have funds, you have three years to put the distribution back in and rebuild your 401k that way.

The tax will be refunded and your 401k is rebuilt.

basically, doing that accelerates your original loan payment schedule to  a three year repayment schedule