Hello,
I have a 401K loan and when I left my employer I stopped paying on it because my payments were no longer coming out. I got my old job back but I didn't continue my payments. My loan defaulted and I received a 1099-R form in the mail to use when filing my taxes which to me means that my loan was now considered a distribution from my account. Am I correct in thinking this? Since the entire loan amount was taxed and I paid the taxes and penalty on my tax return using the 1099-R, wouldn't this wipe out my loan and it would no longer need to be paid being that it was now considered additional income?
Thanks,
Ryan
