Well I'm not sure if there was a loss or not.
Let's put numbers to the situation, maybe that'll clarify.
I overcontributed $7942 in 2018, so in March 2019, I asked my 401k administrator to give me a corrective distribution of the $7942. They then distributed me $7375 instead, which I assume was because of a loss on that contribution, as the markets had dropped a bit since the time of my contributions. Now I am not 100% sure it was from a loss or if there is some other reason why they distributed less than $7942.
The 1099-R code P they sent me shows the $7942 in box 1 and then $7375 in box 2a. I did not receive a 1099-R code 8
