defaulting on 401k loan

[Raul Cesar cortes]

i purchased 2 fourplexes and incurred a ton of losses but project income in future. i was thinking about defaulting on 401k loan due to having enough losses to offset

[Chris Seveney]

@Raul Cesar cortes Not wise move - if you default your going to have the defaulted amount considered a withdrawal and will be subject to tax and the 10% penalty So if you took at $40k and still owed $30k that $30k will have a $3k penalty and $30k will be added to your income and you will pay federal, state, SS etc on it.