how to model 401k loan?
I will take a hiatus from work during which I'll need to use our tax-deferred accounts. If I take a withdrawal I have to pay taxes and can't put it back. My wife will be continuously employed. If we take a loan from her 401k we won't pay taxes on it and can replete it when I return to work.
Suggestions for how to model that? Non-taxable special income and non-deductible special expenses? But how do I model the effect of diminished income on the 401k, from the balance being temporarily reduced? A special expense in years when the balance is reduced, to reflect the lost income only in that year?