dmertz
Level 15

Retirement tax questions

Because of the reference to it as being a defaulted loan, I'm assuming that the plan did not suspend repayments.  I suppose it's possible that that reference is inaccurate, that the loan was not in default due to suspension of repayments and that the plan is now making an offset distribution, but that seems unlikely given the timing.  Check with the plan to be sure that it is being reported as a deemed distribution rather than as an offset distribution.