@AamilD wrote:
To clarify, did you do a withdrawal or loan from 401(k) since both are treated separately?
If you take a 401(k) loan, this is not considered income and you will not be taxed on this.
Good point. If you are testing your taxes, don't enter a 401(k) loan as a withdrawal. It is not a withdrawal and you won't get a 1099-R for it. (However, if you default on the payments, the remaining balance becomes a withdrawal.)
