tst Posted March 19, 2015 Report Posted March 19, 2015 If under 59 1/2 code L (not an IRA) 401k is it subject to 10% penalty? Its a Loan treated as distribution. Thanks in advance. Quote
joanmcq Posted March 20, 2015 Report Posted March 20, 2015 Yes it is. One of the pitfalls of taking a loan from a 401(k). 1 Quote
tst Posted March 20, 2015 Author Report Posted March 20, 2015 Thanks just wanted to be sure. Makes sense. The code L prevented my software from automatically calculating the penalty. So thought perhaps this was different since not a code 1 Quote
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