I know I will be axed, low work volumes, manager who does not care and the unit is a cost center (not contributing to the bottom line).
I have about $40K in 401K loans?
What happens with that.
I cannot repay.
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There’s info on this in the severance docs on vzweb. Like others said looks like you can lump sum pay it or pay over time. Didn’t see anything about the early penalty tax thing but I’m sure that’s also an option if you can’t pay it.
You can keep the loan and continue to make scheduled payments. But if you want to do this, you cannot move the money out of the 401k (like rollover to an IRA). You CAN leave it in the 401k and simply continue making payments.
taxed and penalized like an early withdrawal ( which is what it is )
you have to pay it all back by a certain time otherwise they will take it out of what ever money you have left in your 401k
You don’t have to pay them. What will happen, is it will count as income for the year and you will be taxed on that total amount.