Solved: 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
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

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

 
1 Best answer

Accepted Solutions
Level 3

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

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.

View solution in original post

1 Reply
Level 3

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

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.

View solution in original post

Dynamic Ads
v
Privacy Settings