Note this easing for workers who lose their jobs and have plan loans. The new tax law gives employees who borrow from their workplace retirement plans more time to repay the debt if they’re let go from their jobs or the plan is terminated. Under prior law, employees who left their jobs were usually required to repay the loan within 60 days in order to avoid having the outstanding balance treated as taxable. In essence, the repayment of the loan with outside funds is akin to doing a rollover. Now such people have until the due date (with extensions) of their federal tax returns for the year their employment was terminated to repay their plan borrowings.

401(k) Loan Relief is Here

by | Jan 31, 2019 | 401(k), Northside Tax Service, TallyTaxMan, tax law | 0 comments