by chess2007 on March 20th, 2007

chess2007

Question

Help answer this question below.

I was paying back a 401K loan. My company was sold and I was layed off. The 401K provider filed a code 1 to the IRS and I was assessed a 10% penalty. Can I get that 10% back from the IRS based on this circumstance?

  • Like
  • Report

Answers. 1 helpful answer below.

  • by msherb on April 23rd, 2007

    msherb

    Sorry to say but from what I understand, no. Once you leave company- by firing, quitting or retiring, any outstanding amount in a loan would be sent to the IRS. Any and all penalties would be taken care of automatically.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

You're reading I was paying back a 401K loan. My company was sold and I was layed off. The 401K provider filed a code 1 to the IRS and I was assessed a 10% penalty. Can I get that 10% back from the IRS based on this circumstance?

Follow us on Facebook!

Related Ads

ANSWERBAG BUZZ

Company sold what happens to 401k loans
401k loan when company is sold
401k when company is sold
Irs 4o1k loan
Company is sold what happens to 401k loan