401(k) $1,000 Penalty Free Emergency Withdrawal 1099-R - Repayment

[nes1984]

In 2024 I took the $1000 Emergency Withdrawal that is penalty free.  As I understand I can repay that $1000 without owing any tax on it but I cannot find any documentation regarding repayment or required forms for that to avoid the tax.  Would I just not file the 1099-R for 2024 taxes since I will repay the full $1000 in 2025?  Any help is appreciated.  

[ThomasM125]

If your pension plan allows for the re-payment, it should be reflected on a Form 1099-R issued from your employer in the year of the repayment. It will be entered as a rollover distribution.

It is interesting to note that an emergency withdrawal is separate from a hardship withdrawal. As per this excerpt from an IRS article on pension plan withdrawals, a hardship withdrawal cannot be paid back:

So, it is advisable that you check with your administrator to make sure the withdrawal can be paid back, and in what timeframe.

If you determine that you can't pay the withdrawal back, you may be able to set up a traditional IRA to make a tax deductible contribution, however, which would give you a similar tax break.

[Edited 2/13/25 at 12:43 PM PST]

@nes1984 

[nes1984]

Hi - I am referring to something different here, sorry if my initial question was not clear.

I took the $1,000 Penalty free from my 401(k) distribution as allowed per the secure act 2.0. As part of this the act you can repay it within 3 years to avoid paying taxes on it. The IRS then treats it like a  My company provided me the payback form to submit the check but I am trying to understand if there is a specific tax form to avoid the income tax since it is being repaid.

"Participants generally have up to 3 years to repay the Emergency Expense Withdrawal to avoid paying income taxes on the amount withdrawn."

Since this is so new, I am having a hard time finding details.

[nes1984]

We crossed messages:)

Do you know if I receive the 1099-R for 2025 for  the repayment, does that  effectively reverse the taxes I am paying this year to adjust my 2025 taxes when they come up?

[dmertz]

Forms 1099-R report distributions, not repayments.

To report a repayment, I suspect that you would have to treat the repayment as a late rollover and amend the tax return on which the distribution was included in income.  I don't think that the IRS has provided any specific guidance on this, though.