401k Loan Repayment

Forum|Forum|6 years ago
March 27, 2020
1 reply
73 views

I had a 401k loan. At the time of my retirement (April 2019), the loan balance was about $20,000 with Thrift Savings Plan. After I retired, I closed my Thrift Savings account and rolled it over to an IRA with Ameritrade. Can I still repay the $20,000 to my Ameritrade account? If so, how long do I have to repay? Want to lower my 2019 tax burden.

Best answer by AlanT222

Employees who leave their jobs with an outstanding 401(k) loan have until the tax-return-filing due date for that tax year, including any extensions, to repay the outstanding balance of the loan, or to roll it over into another eligible retirement account. Prior to the Tax Cuts and Jobs Act of 2017, the deadline was 60 days.

This means you will have until the tax return due date this year to pay the loan back.

AlanT222Answer

Level 15

This means you will have until the tax return due date this year to pay the loan back.

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jen78miAuthor

Level 2

Thank you! I was worried that since I had closed the TSP account that I would no longer be able to repay the loan.

bkmDanno

Level 2

Hi, I have a similar situation but with twist. I have a loan from my Vanguard 401-k and I've been laid off. Vanguard says my company set it up such that these loans have to be paid back WITHIN 90 DAYS of layoff. But the Tax Cuts and Jobs Act says the deadline is now the due date of the employee’s tax return for the year in which the distribution occurs, including extensions. I need to know which one is the OVERRIDING RULE. Thank you.