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And you should have a valid bank account in US. Frequently Asked Questions What if you fail to pay back the loan in a timely fashion? Unless you qualify for a waiver or extension of the 60-day rollover requirement, the transaction will be considered a distribution out of the account. If so, you'll owe income tax on the distribution. If it's an early distribution (before age 59 1/2), you could owe an additional 10 percent penalty.
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