I understand that me taking a 401k was not a good idea so please as much as I know people want to tell me that I already know. I made a mistake...and did take a 401k loan out of my current employer.
I have found a new job and plan to leave this current employer and am reading that when a 401k loan is not paid off right away (within like 60 days) you end up having to pay a 10% early withdrawal penalty and the amount taken will be reported on a 1099R (Taxable income). Basically I am screwed it looks like...(I know I should of never done this - but I did so I have to deal with it).
My question is since this new employer is using a different company for our 401k (I cannot remember the name) and I used to have Fidelity I had some questions. Can I call fidelity and ask if they could just auto deduct from my new paycheck or allow me to pay back my loan monthly and hold me to it until I paid it off to avoid these issues?
Is there anything else I can do to avoid this? Please note I did not take the money out to purchase a vehicle or for hardship...I took it out for other reasons that do not apply to these special cases. If I cannot get out of this in any way how do I pay the 10% penalty - will a bill be sent to me? For what its worth the loan was for 22k USD.