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New Member
posted Jun 4, 2019 1:36:25 PM

Do you have to pay taxes on a loan from your retirement plan or just the 10% penalty if under the age of 59 1/2

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Level 3
Jun 4, 2019 1:36:26 PM

If you took a loan and are in repayment, you would not pay anything (no penalty and no addition to your taxable income). If you took a distribution, that amount would be considered income and if you are under 59.5 years old, the 10% penalty would be assessed.

1 Replies
Level 3
Jun 4, 2019 1:36:26 PM

If you took a loan and are in repayment, you would not pay anything (no penalty and no addition to your taxable income). If you took a distribution, that amount would be considered income and if you are under 59.5 years old, the 10% penalty would be assessed.