5.4 Pensions/Annuities/Retirement Plans (i.e., 401(k), etc.): Plan Operations
If you default on a loan from your 401(k) plan, you are considered to have received a distribution from your 401(k) plan. Whether or not you will have to pay the 10 percent additional tax on early distributions from 401(k) plan depends on a number of factors, including your age.
In order to avoid the 10 percent additional tax on early distributions from qualified retirement plans, the following all must be true:
- you received the distribution after you left the company; and
- you left the company during or after the calendar year in which you reached age 55; and
- your departure from the company qualifies as a separation from service.
Required Minimum Distributions
Wavers of the 60-Day Rollover Requirement
72(t) or Substantially Equal Payments - Revenue Ruling 2002-62
Form 5500 Delinquency Notices - CP 403/406