Did you receive a 2024 IRS form 1099-R that reported the distribution that was the 401(k) loan payoff? It sounds like the issuer of the IRS form 1099-R could be reporting the code M on the form.
IRS Plan Loan Offsets states:
The instructions further require that a QPLO should be reported as one would any other actual distribution.
In addition, the administrator would enter Code M in box 7 of Form 1099-R.
Plan administrators must report any QPLOs on Form 1099-R for QPLO distributions made in 2021 and later.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
