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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have a 401(k) with approx. $186,000 in it today. I took

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I have a 401(k) with approx. $186,000 in it today. I took out a loan and the balance due is $24,800. If I retire, will my balance be ducted from the $186,000 when I roll it into an IRA?

MyVirtualCPA :

Thanks for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

If you leave your place of employment, the remaining balance of your 401(k) loan will be treated as a withdrawal and you will owe tax, and possibly penalties (if under 59.5) on the amount outstanding

MyVirtualCPA :

So, yes - the $24,800 will be deducted from the $186,000

MyVirtualCPA :

There are no IRA loans, so you will no longer have to make the loan payment, although you will pay tax on the amount drawn out

MyVirtualCPA :

Do you have any further questions?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today. Thanks again for using JustAnswer.com and have a great day

Customer:

For NY State, filing Single 1, what would that amount be (approximately - I will not hold you to it)

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Joe,

I see we were having technical difficulties with chat. If you would, please take a moment to review my response. If satisfied, please rate as "excellent" so that I may receive credit for assisting you today. If you need further assistance, please reply below. Thanks again.

Joe,

I got a message that you replied, but I don't see your response. Could you please copy and paste it below?

Thanks!
Customer: replied 3 years ago.


As a Single 1, living in NYS, can you give me an approximation (I will not hold you to it) of what I would pay in income taxes? I will be 62 next January

It all depends on your other income, I would say that 15% would be a safe bet, unless you have a higher income in which case I would say 25%.

Please let me know more about your other income if you need a more exact amount. Thanks

Please take a moment to rate this response as "excellent" so that I may receive credit for assisting you today. Thanks again!
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