@ConfusedTaxpayer100 Based on your question I believe that you took a loan out from your 401K in 2020 and that in 2022 you will default on the loan and it will become a distribution effective this year.
In that case the distribution is fully taxable in 2022 as of this time. The option to distribute the taxes on a withdrawal from your retirement plan over three years expired at the end of 2020 and there have thus far been no indications that it will come back. While it is always possible that congress will change its course and reinstate the three year option you should plan on paying all of the taxes on your distribution - as well as a 10% early withdrawal penalty if it applies - with your 2022 tax return.
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