I left my previous job voluntary with around $25k outstanding 401(k) loan. After 2-3 months, I received a letter from my prior employer informing me that the loan was deemed default since I left the job and stopped making loan repayments. From reading the Tax Cuts and Jobs Act of 2017, sounds like I have until 4/15/2020 to make $25k contribution to my IRA or new employer's 401(k) to offset the loan amount and not pay early distribution penalty or the ordinary income tax. What form do I need to complete to report this event for my 2019 tax filing? Is TurboTax making update to the system to recognize the loan offset and not pay the penalty + tax?
Thanks.
