Hi Brian DNY
I am following up from the additional reply. Your loan repayment is not taxable unless you default. To help clarify, your repayment is probably coming out of your paycheck. This payment is after all other required taxes come from your paycheck. You are not paying taxes on the repayment. I have had a situation like this to me so I am confident that you are not being taxed. As long as you can make the repayment, your loan will not default which then will trigger a 1099-R on the unpaid balance. If you have additional questions, my suggestion is to talk with the 401k administrator and they most likely will provide further insight about the loan repayment. I hope that I have provided additional clarification to answer your question. Have a great rest of your day.
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