I am considering leaving a position for a much better opportunity with another company. I have a 401k loan that is part Roth 401k with a balance of approximately $30,000, and I'm trying to decide whether to default on that and pay the taxes and penalties or if it's worth my while to roll it over onto a line of credit.
If I choose default and pay the tax bill, is the deemed distribution be allocated proportionately between the traditional 401k and Roth 401k? Or is it entirely just considered traditional 401k?
If it's allocated, I have already paid taxes on the contributions for the Roth 401k when they were deducted from my paycheck - would I be required to pay the taxes on that amount again, or would I only be required to calculate the taxes on the gain?
