Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can a participant take a loan from a Roth 401(k) Account?

April 26, 2017account loan participant Roth

0

Posted

Can a participant take a loan from a Roth 401(k) Account?

1 Answer

0

Posted

Yes. However a loan default and deemed distribution cannot be treated as a non-taxable distribution. Therefore, even though a participant has paid taxes on the Roth 401(k) contributions, they will be taxed again on the outstanding balance of a defaulted loan.