I borrowed money from my 401k to payoff mortgage loan. can i deduct that interest? i am still paying back the loan from payroll deductions

[ChristinaS · Accepted solution]

No, sorry- the interest on a 401(k) loan is not deductible.

Only mortgage interest is deductible. Deductible mortgage interest requires that a residence be collateral on your loan. When you borrow money from your 401(k), your home is not collateral.

Any mortgage interest paid is deductible, but that doesn't include interest on a 401(k) loan.