I had a similar issue but left previous employer and 1099-r code 1M. I was advised to take out another 401k loan with new employer and then fund a rollover ira or traditional ira so i won't take the tax hit. The amount of 15k though is greater than the limited max amount in ira 7500 for 2023 and 6K for 2022 that the rollover ira gives me an option to fund it with.
I have not completed funding because i'm trying to fund an ira with same amount of the loan. Should i fund the max for both 2022 and 2023 and the remainder of amount to roth ira or what other qualified retirement account can fund? Any suggestions or advice on what can i do to avoid the tax before i file?
