I have a general 401K loan question. I took out a 401K loan to pay for post grad and still work at the same company and have made all my loan payments on time. I recently did my tax return and upon entering my 1099 for the loan I now owe ~$10K in federal taxes. From everything I read, you don't pay taxes on loans unless you default on the payments or leave the company and then it is recognized as additional income.
