I changed employers and am unable to pay back my 401(k) loan within the 60-day period allowed. I realize this will default the loan and I will receive a 1099-R, have to pay taxes and penalties. The rub is that I will have money sufficient to cover the loan about a month AFTER the 60-day period. I checked with the plan administrator, and they are unable to extend the period of the loan. Are there any steps I can take to help myself tax-wise, like making a large retirement fund contribution before April 15? If so, am I hedged in by the catch-up contribution amount of $6,000? I'm over 50. Kind regards for your advice.
You should try to take out other loans sufficient to pay off your 401(k) loan if you can.
Maybe you can take out a home equity loan? You can also ask your bank about unsecured loans.
You should also check the rules for your new employer's 401(k), if you're rolling over your 401(k). There's a small possibility that you could take out another loan right now and apply it to the previous loan balance. Or if you need to wait, you could use it to help pay off any temporary loans that were needed to avoid the distribution penalty.