What would you like to do?

Can you pay off a 401k loan with another IRA account?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

First, Never borrow from your 401k plan. You can pay off your 401k loan with money form any legal source. The money does not need to be deducted from your pay check. That is the most convient method. To use money from an IRA, it would be necessary to take an UNQUALIFIED DISTRIBUTON from your IRA. If this is a Traditional IRA, the mney would be subject to income tax. And if you are not yet at the age of 59.5 years, a 10% penalty would be assessed on the amount taken from the IRA. This 10% would need to be paid when you file your income tax return. If this is a ROTH IRA, there are some different rules. Distributions from a ROTH IRA come out in an ordered fashion.
- First to come out is our annual contribution amounts. These amounts come out free from tax and free from penalty.
- Second to be distributed from a ROTH IRA is our Conversion Contributions. Conversion amounts are distributed tax free. A 10% penalty may apply if the conversion is less than 5 years old. Each Conversion has it's own 5 year clock.
- Last to come out is earnings. If the ROTH IRA owner is younger than 59.5 years, the earnings will be taxed and the 10% penalty will apply.
5 people found this useful
Thanks for the feedback!

If you have a 401K loan when can you pay it off after Chapter 7 so the trustee does not take the savings?

I am a 401(k) specialist with a very LARGE investment company. 401(k) plans are protected under IRS federal law and can NEVER be used against your will to pay off debt due to

How do you rollover a 401k into an IRA if there is a loan against the 401k?

Answer . I had a client in the same situation. (I assume you are the person who took out the loan on your own 401(k) ). When the rollover took place, the amount of the o

Does a 401K or IRA count as an asset on an automobile loan?

  Answer   I would think so ... shows the lender that you are earnestly saving money and investing in yourself.   Bear in mind that if you need to pull any monies

Can I get a loan by using my IRA account as collateral?

Yes you can use your IRA account to apply for a loan as collateral and guarantee to a money lender when applying for a loan. Although i was offered a loan with no credit check

Can you get a loan from your IRA account to purchase a home?

If you do not want to pay taxes and penalties then you should not try lending money from your IRA. Doing so violates the "self-dealing" provisions of IRA law. If you attempt t

Can you have a 401K and an IRA?

You can have as many 401k plans and IRA's as you would like.  However, to have a 401k plan, it has to be through your employer,  and there are limits to what you can put in.

Can you take your IRA account and transfer that IRA account into another individuals IRA account?

  No, you can not transfer an IRA account from one person to another. IRA accounts are only for one particular individual. You would have to take a distribution from your

Are both a 401K and an IRA considered to be a money market account?

A money market account (MMA) and a 401(k) plan are not the same. The former is a type of savings account while the latter is an investment account. Some of the key differences

Can you transfer money from a self-directed IRA into a 401k account?

Doing a "rollover" from a 401(k) to an IRA just means moving the  money from one tax-advantaged account controlled by your employer  to another tax-advantaged account contro

Can you move money from a self-directed IRA to a 401k account?

In some cases, people want to transfer the money from their IRA to 401(k) plans. Some of the reasons why people may take such a move are -They have too many retirement account

Can you pay off a 401k loan with another 401K?

 Taking a loan through a work retirement plan means you're borrowing  a portion of the money in your account and paying yourself back.    Retirement plans offered th

How does one rollover a 401k account into an IRA?

First, one must open a Roth IRA account. Then one must contact your human resources department, who will send you to the 401k plan administrator. One may then request the requ