I have heard 10% penalty + up to 20% tax on top of that. If I am unable to repay loan (down payment on primary residence) that I will basically pay 30% of the remaining balance whether in fee's or tax next year when I have to file a 1099-R?
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Generally, you will incur a 10% penalty if you are declared in default on the loan.
You will also be taxed at ordinary income rates for the distribution depending on your tax bracket.
To estimate your tax 2018 tax bracket, see the following chart:
Generally, you will incur a 10% penalty if you are declared in default on the loan.
You will also be taxed at ordinary income rates for the distribution depending on your tax bracket.
To estimate your tax 2018 tax bracket, see the following chart:
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