business loan

[Gabbiano]

I withdrew money from my 401k and used it to make a loan to a business. How is that money handled?"

[VolvoGirl]

What you did with it doesn't matter.  Just enter the 1099R you got.  It will be taxable and a 10% Early Withdrawal Penalty if you are under 59 1/2.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Enter a 1099R under

Federal Taxes on the left side

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

If you are filing a Joint return be sure to pick which person it is for.

[Gabbiano]

Thanks.  That's what I thought, but had to ask anyway.