Retirement tax questions

@MikeinSC 

There was a recent law change, I believe it was the SECURE act.  When an employee separates from service and they have an outstanding loan in their qualified retirement plan, they have 60 days to repay the original plan. If they don’t, the plan will call it a deemed distribution and issue a 1099R at the end of the year.  However, under the SECURE act,  the employee has until the tax filing deadline to make an offset contribution into a different plan that will offset the loan and cancel it out.  This can be viewed as a special kind of delayed rollover.  The taxpayer will still report the 1099R on their tax return, but when TurboTax asks what did you do with the money, the taxpayer will be able to indicate that they made an offset contribution to a different retirement plan.  (In most cases, the original plan will refuse to accept a loan repayment after 60 days.)

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