401k loan default

[kayleebug1]

I have a 401k loan through my job in the amount of 980 dollars I am having to leave my job due to having a baby and having to stay home now I got the loan in 2024 and am leaving January 2025 my tax return will only be around 1,100 dollars how much am I expected to loose out of that for a $980 401kloan

[DoninGA]

If you default on the loan in 2025, you will not receive a Form 1099-R for tax year 2024 from the plan administrator.  The 1099-R to report the withdrawal will be sent to you in January 2026 to be reported on the 2025 tax return.

[DaveF1006]

It depends. DoninGA has given you a great answer. To expand his/her answer, your refund is safe for this year. Next year the 1099R you will receive will be taxable income. How much tax generated on this withdrawal depends on what tax bracket you will be in.

@kayleebug1