i am paying back a loan and that money is being put into pretax, aftertax and pretax catchup buckets by the investment co. some of their reps tell me that the
loan came from all 3 sources. however, according to the irs, loans from 401k's should come from pre-tax dollars. what is going on here? were the irs
representatives correct in saying that all loans should come from pre-tax dollars????
also, a rep from the irs told me that while the paid-back principal of the loan is put back in the pre-tax bucket, the interest that i am paying on the loan
should be put into the after-tax bucket and cited pub 535, page 17, lower right hand corner, as her reference. is she correct?
IMPORTANT NOTICE: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal, tax or investment advice to the questioner's situation. Individual situations vary. Please consult your tax, legal or financial advisor for more detailed information and advice.