Is the interest on the ROTH 401k loan tax deductible?
No. The interest paid is generally nondeductible. (However, if the loan is secured by a participant’s principal residence, the interest is deductible as long as the participant is not a key employee. I.R.C. 72(p)(3). Key employees are officers with annual compensation in excess of $130,000, a more than 1% owner with annual compensation in excess of $150,000 or a more than 5% owner).
