Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated about 9 years ago on . Most recent reply

Will borrowed 401k money get double taxed?
Hello BP, I have this nagging thought in my head: will borrowing from one's 401k cause double taxation? Since it's being paid back with after tax dollars, then get's taxed when it is distributed at retirement.
Most Popular Reply

The principal AND the loan interest you pay back into the 401k are paid back with after tax dollars. When withdrawn from the 401k in retirement, that amount will be taxed again.
in short, the answer to your question is YES.