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Good afternoon. If you take it as a withdrawal, because you are over 59 1/2, you will have no early withdrawal penalty. Rather, you simply include the withdrawal amount in your ordinary income and you will pay tax on it at your marginal income tax rate...I'm presuming that none of the contributions were made on an after-tax Roth basis. If taken as a withdrawal, there is no obligation to repay the withdrawn amount. If you borrow from your 401k, it is not included in your income, but you do have to repay it just like any other loan would be repayable.
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