If the borrower simply leaves his business, any remaining balance to your his 401(k) financing, L

If the borrower simply leaves his business, any remaining balance to your his 401(k) financing, L

bal, typically converts to a balloon payment. If he leaves his job and does not repay Lbal within 6090 days, the loan is considered to be in default. It must then be reported to the IRS as a taxable distribution from the plan at that time, producing a tax liability of Lbal(?+.1).

Read moreIf the borrower simply leaves his business, any remaining balance to your his 401(k) financing, L