Usually taking a loan from your retirement plan is completely tax-free, however, taking too large of a distribution can trigger tax.
A loan distribution of $50,000+ or 50%+ of the account balance is classified as a taxable distribution.
Defaulting on a retirement plan loan is also considered taxable income.
As always our tax plan for business owners or investors bundles this knowledge and MUCH more into account to create your individualized tax plan to be used for YEARS. Feel free to text, email, or call us to see how a tax plan could benefit you.