Q. I plan to retire in January 2017. At that time I will have an outstanding general loan for which I will get a distribution statement. I have been told that this will count as my one lifetime withdrawal? What happens if I make an in-service withdrawal before I retire to pay off some other debts, and still have the outstanding loan at retirement?
A. The declared distribution will not count as your partial lump-sum withdrawal. In any event, an unrepaid loan will be declared a taxable distribution after you retire.
