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Level 1
April 15, 2026
Question

Is a loan from my 401k, used to pay a medical bill last year, considered a distribution? I didn't receive a 1099-R. Is it taxable or not?

  • April 15, 2026
  • 1 reply
  • 47 views
Is a loan from my 401(k) considered a distribution and taxable?

1 reply

Level 15
April 15, 2026

No, a loan from your 401(k) is not a distribution.  If you were to leave the company with an outstanding loan balance, the outstanding loan balance would turn into a distribution, bit you would receive a Form 1099-R which you would use to report the distribution on your tax return.

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