Not only taxable, but it's treated as a premature withdrawal, so you'll get hit with a 10% penalty as well.
Not only taxable, but it's treated as a premature withdrawal, so you'll get hit with a 10% penalty as well.
This is why 401k loans can be incredibly risky. The borrower SERIOUSLY needs to fully consider every single other option before taking out this loan, and ideally they need to discuss the possible repercussions with a financial adviser or tax professional before doing so.
(such as llworking)