Question: I understand that the new tax law changed the deadline for repaying a 401(k) loan if you leave your job. How much time do borrowers now have? - S.C., Omaha
Answer: The new—and extended—deadline to repay the loan and avoid taxes and penalties is the due date of your tax return for the year you leave your job. Before, you had to repay the loan within 60 days of leaving your job to avoid taxes on the money, plus a 10% penalty if you left before age 55. If you file an extension for your tax return, you’ll have until October 15 of the year after you leave your job to repay the loan without penalties or taxes.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Increasingly, Red States Embrace Marijuana: The Kiplinger LetterThe Kiplinger Letter Ohio becomes the 24th state to legalize marijuana for recreational use via a voter referendum.
-
Charlie Munger of Berkshire Hathaway Has Died
Charlie Munger, vice chair of Berkshire Hathaway, died Tuesday, the company confirmed.
-
Credit Report Error? They All Matter
credit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driver
insurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
Getting Out of an RMD Penalty
retirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
529 Plans Aren’t Just for Kids
529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Account
savings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How Your HSA Can Reimburse You for Medicare Premiums Paid
Medicare Even if your Medicare premiums are automatically deducted from your Social Security check, you can take tax-free withdrawals from a health savings account to reimburse yourself for them.
