If I receive a 401-k loan balance as a distribution after I turn 59 1/2, do I pay a penalty (even through I originated the loan before I turned 59 1/2)?

sajmills · ‎June 4, 2019

MinhT · ‎June 4, 2019

No, you do not have to pay the early withdrawal penalty if your deemed distribution for your loan occurred after you have reached age 59 1/2, even if the loan origination took place before age 59 1/2.

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MinhT · ‎June 4, 2019

No, you do not have to pay the early withdrawal penalty if your deemed distribution for your loan occurred after you have reached age 59 1/2, even if the loan origination took place before age 59 1/2.

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If I receive a 401-k loan balance as a distribution after I turn 59 1/2, do I pay a penalty (even through I originated the loan before I turned 59 1/2)?