401k default loan w/Vanguard and new company rolled it over within a month and paid off loan from my old company 401 (also w/vanguard). is there penalty?

[kerfree0898]

my box 7 has a 1.

[fanfare]

what do you mean by "default loan"? were you in default?

[dmertz]

The code 1 indicates that the distribution is subject to a 10% early-distribution penalty unless an exception applies.  See the exceptions available for qualfied retirement plans:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...