When Eloise (42) lost her job this year, she had an account balance of $45,000 in her 401(k). She also had an outstandin
Posted: Wed Jul 06, 2022 6:43 pm
When Eloise (42) lost her job this year, she had an accountbalance of $45,000 in her 401(k). She also had an outstanding401(k) plan loan of $5,000 secured by that balance. She made noafter-tax contributions. If Eloise is unable to repay the loan andthe loan amount is treated as a distribution, how much is subjectto the early distribution penalty?
1) $2,500
2) $5,000
3) $45,000
4) $50,000
1) $2,500
2) $5,000
3) $45,000
4) $50,000