i took out a loan from my 401k, then lost my job after only making 2 payments. question is, if i pay it back, when i took the money out dow was around 14000, now it is at 8000, so when if i pay back the loan, am i buying back at dow 14000 levels and immediately losing money down to the 8000 range. i realize it is not all dow related, but am trying to figure out if i pay back 30k if i shoud instead keep the money, pay the penalty and taxes since my income will be down this year and there are no capital gains.
if i default on the loan, the gov sends out a 1099 as income, how about the rest of the money that was in the account that was not taken out on loan? can that still be rolled over?