1099-R box 7 incorrect coding on 401k loan plan offset

[ivatan]

Hello @daman100169

I find myself in  the same situation as you are. The distribution code on my 1099-R for my defaulted 401k loan balance after I left my former employer is set to "1". The agent I talked to at TD Ameritrade where I plan to do the late rollover says I can simply call, email or chat online with them to request that box 13a for the 5498 be set to late contribution and box 13c code is set to "PO". I am told I can ask them to do this anytime after I fund my IRA account for the 1099-R amount I will be reporting in this year's return as a "plan loan offset amount rollover".

My question to you is, since you did this in tax season of 2020 (leaving distribution code of your 1099-R as "1"), did it all go through without any problems with the IRS? Could you share your experience on this further?

Thank you!

[daman100169]

It has been a while since I dealt with this situation. 

As an update, my taxes were filed with no problems. I have also filed 2020 and 2021 (not back yet) with no problems. 

I made it a point to keep records of everything and will hold on to it for a while. I also have made it a point to now keep track of my retirement contributions in a spreadsheet so I can ensure that if I ever need to take a loan I am properly tracking the contribution year to ensure it is eligible. This includes resetting the clock on the loan money that I rolled into an IRA. 

Good luck  in your situation. You should already feel lucky that you are not dealing with Fidelity as they did not make the process easy. Keep us updated.