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When would a 401k loan default be due with the penalty and income tax to the remaining amount of the loan owed? Is it next year when taxes are filed?
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When would a 401k loan default be due with the penalty and income tax to the remaining amount of the loan owed? Is it next year when taxes are filed?
If the default happens in 2017 then it is reported on the 2017 return ... in January you should get a 1099-R showing the distribution with a code 1 in box 7. Since there will be no taxes withheld from the loan default you may need to make estimated tax payments or increase your withholding somewhere else to compensate.
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