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How to repay a 401(k) loan after leaving a job

By Kate Swindlehurst - Apr. 25, 2023

After leaving a job where you have a 401(k) loan, you need to pay back the full amount of the loan. There may be options for you to do so on a payment plan, or you may be required to pay the full amount at once.

It depends on your specific plan and loan. If you cannot repay the loan, it is considered in default, which can greatly affect your credit.

For 401(k) loan repayment, you need to pay back the full amount of the loan before the filing deadline of your tax return. You can pay back the full amount afterward, but this does have tax consequences which can cost you a lot of money, depending on the amount of your loan.

How to repay a 401(k) loan after leaving a job

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