Really appreciate your reply. Thank you.
long story short: last year my wife was working in a start up, took 401K loan and then got laid off abruptly on 31st May 2019. No one contacted us about this loan, so we got in touch with the former 401k company (“for us all ”) about options. They told (very rudely!) us that we need to repay the loan within 60 days or else we will have to pay 10% penalty and 30% tax of this unpaid loan.
Luckily we then came across articles on “2018 law of tax cuts and jobs act” which at-least clarified that we have time till April 15, 2020 to pay back the loan.
Now, My wife has moved on to another job and we managed to save funds to pay this ‘offset distribution’. My wife hasn’t yet rolled her former 401k to the new company’s 401k.
now the questions is: how and whom should we pay the offset distribution?
thanks to your message we now know about 1099-R. Not sure how to get this filed and when? That’s why we may need a professional help to file this year’s tax return. Please let us know if you have any additional suggestions/advice.
thank you
