Pay off 403b loan with 401k - rollover?

Pay off 403b loan with 401k - rollover?
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#1

My wife has a loan on her 403B account. I’m over 59-1/2 and plan to take my 401K money to pay off that loan. Would that be considered a rollover?


#2

Hi, @rsbh, and welcome to the community! The short answer is no. You’ll be taxed on the distribution. If the distribution is large enough, it could push you into a higher tax bracket, so definitely check with a tax pro.

Generally, those pros would discourage taking money out of retirement funds any sooner than you have to. Are you concerned about your wife’s ability to pay back this loan?


#3

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