Can I use my wife's tax deferred annuity in which we no longer contribute to pay off loan on my 401K account? - tax deferred variable annuity
If so, how to avoid paying taxes or penalty, since the funds d'un tax favored account to another?
Tax Deferred Variable Annuity Can I Use My Wife's Tax Deferred Annuity In Which We No Longer Contribute To Pay Off Loan On My 401K Account?
3 comments:
A 401 (k) loan must be after tax money (usually deducted at source will be repaid). Thus, the loan amount and interest is effectively taxed twice (the money paid back, and again when eventually withdrawn). There is only one reason why 401 (k) loan is a bad idea.
If there is a way of reinvestment of proceeds in a k of the IRA or your 401 () which would cause a reversal, and does not include you in the loan.
Robbing Peter to pay Paul anyway too. If you cash deferred taxes, then they will certainly have to pay tax on. If the transfer of pension rights, 401k, maybe not, if you can. You need to talk to the first 401 people and ask them the procedure that you want, then go to individuals or pension and begin the transfer process. Normally, the receiving side will be aware of the procedures and signed a number of things have happened so smoothly.
Yes, you can use your income to repay the loan, but it makes little sense since then in the same situation, as would be the taxes and a penalty if it referred to 59-1/2, on the withdrawal of your pension. Cancellation of a loan of 401K is not a rollover.
From the pre-tax profit dollars from your 401K, if you took the loan, so you can not double-dip and replace them with pre-tax money.
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