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Is it possible to avoid tax penalties on a 401k loan default by opening an IRA for the same amount as the outstanding loan balance?
Got caught in a lay-off, transferred the 401k funds to my new employer. Got advice from an IRA guy that taking a new loan on the 401k and opening an IRA in the same amount of the loan will solve the problem. Is this likely to work or am I better off paying off the original 401k loan?
Chris.
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May 31, 2019
4:52 PM