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If debtor actually leaves their jobs, any leftover amount owed towards the 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 …

If debtor actually leaves their jobs, any leftover amount owed towards the his 401(k) financing, L Read More »