Is taking a loan on your retirement 401k considered a withdrawal

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Is taking a loan on your retirement 401k considered a withdrawal

A true 401k loan is not considered to be a withdrawal as long as you are current in your payments, and it doesn't get reported as income. If you default on the loan, then the balance is considered to be a withdrawal/distribution. That is reportable and taxable.

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Is taking a loan on your retirement 401k considered a withdrawal

A true 401k loan is not considered to be a withdrawal as long as you are current in your payments, and it doesn't get reported as income. If you default on the loan, then the balance is considered to be a withdrawal/distribution. That is reportable and taxable.

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