Deemed distribution. If a loan is treated as a deemed
distribution, it is reportable on Form 1099-R using the
normal taxation rules of section 72, including tax basis
rules. The distribution also may be subject to the 10%
early distribution tax under section 72(t). It is not eligible to
be rolled over to an eligible retirement plan nor is it eligible
for the 10-year tax option. On Form 1099-R, complete the
appropriate boxes, including boxes 1 and 2a, and enter
Code L in box 7.
