 |
Retired-ishAuthor: Cameron Valadez Language: en Genres: Business, Education, How To, Investing Contact email: Get it Feed URL: Get it iTunes ID: Get it Trailer: |
Listen Now...
I Want to Retire But I Have a 401(k) Loan & Are 401(k) Loans Double Taxed?
Episode 84
Sunday, 14 December, 2025
If you're planning to retire in the next year or two and you have a 401(k) loan, this episode could save you thousands of dollars in taxes. I've seen too many people walk into retirement with an outstanding loan balance and get blindsided by a massive tax bill they could have easily avoided with a little planning. Then we're going to tackle one of the biggest myths in the retirement world - the idea that 401(k) loans are double taxed. Spoiler alert: they're not, and even very influential financial gurus get this wrong. More specifically, Cameron discusses: The requirements for a tax-free loan from an employer plan such as a 401(k) The tax ramifications of a "Deemed Distribution" The tax ramifications of a "Qualified Plan Loan Offset" or QPLO Potential tax pitfalls when retiring with an outstanding plan loan balance Are 401(k) loans double taxed? Key moments: (00:00) 401(k) Loans and Retirement (02:12) Requirements for Tax-Free 401(k) Loans (06:33) "Deemed Distributions" Explained (11:03) "Qualified Plan Loan Offsets" and Rollovers (15:43) Retirement Tax Planning & ACA Subsidies (19:28) Case Study: ACA Subsidies at Risk with Outstanding 401(k) Loan Balance (27:01) Alternatives for 401(k) Loan Repayment (30:20) Debunking the Double Taxation Myth of 401(k) Loans (39:51) True Costs of 401(k) Loans Resources From The Episode: Get Show Notes Here Retired-ish Newsletter Sign-Up See if you're a good fit for our Free Tax-Optimized Retirement Playbook™
