DianeW
Expert Alumni

State tax filing

The company will issue you a Form 1099R and this will be reported as taxable income from a retirement plan.  As such, if you are below age 55, you will also have a 10% premature distribution penalty on the taxable amount.

You should confirm whether they actually did withhold and repay the loan back to your 401(k).  If not, it is taxable to you as noted.

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