Hello daman100169,
I have a very similar issue except my timeline is as follows:
- 401k Loan taken for $32,650 in Nov 17, 2016. My 401k Vested balance was reduced by the loan amount.
- Made payments for 2 years from biweekly paychecks until I left the company in Nov 2018.
- Since payment to the loan was made in Nov'18, the 401K loan remained in good standing for Q4 2018 but no payments could be made per plan guidelines.
- Loan defaulted on 3/29/19 with a balance of $21,103.
- A 1099 R issued by the fidelity with code 1 in Box 7 and $21,103 in Box 1 and 2(a) of 1099R
- I rolled over the remaining 401k Balance to a Rollover IRA in June 2019.
My understanding has been that I should be able to rollover the loan offset amount of $21,103 in the rollover IRA until the 2020 tax year deadline. Based on your experience could you please confirm if my understanding is correct??
Also, I am wondering if i rollover the loan offset amount to the existing rollover IRA how do i make sure i get the correct form 5498? Could you please share your experience??
Thanks,
Sumit
