Q. I have an outstanding balance of $24,000, and I’m retiring Sept 30. I’m told I will have to repay the loan within 90 days, or it will be treated as a disbursement. Will I have the option of asking it to be declared, say, Nov. 1? I want to keep it in this tax year and make estimated tax payments now.
A. You do not have the option of specifying the declaration date. You could accomplish what you want by retiring, taking a lump-sum withdrawal equal to the amount of your loan balance, and then using the proceeds of the withdrawal to repay the loan before it is declared a distribution.