If you're planning to retire in the next year or two and you have a 401(k) loan, this episode could save you thousands of dollars in taxes.

I've seen too many people walk into retirement with an outstanding loan balance and get blindsided by a massive tax bill they could have easily avoided with a little planning.

Then we're going to tackle one of the biggest myths in the retirement world - the idea that 401(k) loans are double taxed. Spoiler alert: they're not, and even very influential financial gurus get this wrong.

More specifically, Cameron discusses:

• The requirements for a tax-free loan from an employer plan such as a 401(k)
• The tax ramifications of a "Deemed Distribution"
• The tax ramifications of a "Qualified Plan Loan Offset" or QPLO
• Potential tax pitfalls when retiring with an outstanding plan loan balance
• Are 401(k) loans double taxed?

Key moments:

(00:00) 401(k) Loans and Retirement

(02:12) Requirements for Tax-Free 401(k) Loans

(06:33) "Deemed Distributions" Explained

(11:03) "Qualified Plan Loan Offsets" and Rollovers

(15:43) Retirement Tax Planning & ACA Subsidies

(19:28) Case Study: ACA Subsidies at Risk with Outstanding 401(k) Loan Balance

(27:01) Alternatives for 401(k) Loan Repayment

(30:20) Debunking the Double Taxation Myth of 401(k) Loans

(39:51) True Costs of 401(k) Loans

Resources:

• Get Show Notes Here
• Retired-ish Newsletter Sign-Up
• See if you're a good fit for our Free Tax-Optimized Retirement Playbook™