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Old 08-06-2005, 01:15 AM
Sniper Sniper is offline
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Join Date: Jun 2005
Posts: 704
Default Re: Where is the tax liability? Borrow 401K to fund Roth IRA.

You are not actually "withdrawing" it. You are simply borrowing it from yourself.

As a general rule, borrowing from a 401K has risks associated with it and is generally not a good idea. The biggest risk being that you have to repay all 401K loans if you switch jobs, or have it treated as a withdrawl, which includes a penalty and tax liability.
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