dmertz
Level 15

Retirement tax questions

Even though it comes from after-tax funds, I don't think that the interest you pay on the 401(k) loan adds to your after-tax basis in the 401(k).  With regard to a 401(k) loan, I believe that you only get an addition to after-tax basis when you repay an amount of a defaulted 401(k) loan which the 401(k) plan treated and reported as a deemed distribution.