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L1 and M1 distribution codes on 1099R
I left a job in 2018 with an outstanding loan from my 401k. I received a 1099R for my 2018 taxes with and M1 distribution code. I included it on my 2018 taxes, paid the income taxes, and the additional 10% early withdrawal penalty. I then received a 2019 1099R with a distribution of L1 for the same loan. When I enter in Turbo Tax, income tax and early withdrawal penalty are applied again. I know I don't have to pay taxes and penalties twice. Did I receive the 2019 1099R in error or am I entering the information incorrectly?
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May 5, 2020
1:12 PM