Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Feb 3, 2021 6:05:27 PM

401k loan

I took out a 401k loan and I am paying it back. It is on form 1099-r, why I am getting taxed on it if I am paying back a loan from my retirement plan. 

0 4 367
1 Best answer
Level 15
Feb 3, 2021 6:08:58 PM

It should not be on the 1099R.  Ask your employer or the plan.  Maybe they don't think it was a loan but a distribution.  Or you misunderstood something.

4 Replies
Level 15
Feb 3, 2021 6:08:58 PM

It should not be on the 1099R.  Ask your employer or the plan.  Maybe they don't think it was a loan but a distribution.  Or you misunderstood something.

Level 15
Feb 3, 2021 6:09:07 PM

You do not get a 1099-R for  loan you are paying back.

 

What code is on box 7?

Level 1
Feb 3, 2021 8:24:04 PM

My mistake it wasn't a loan it was a covid withdrawal.  

Level 15
Feb 3, 2021 8:32:41 PM


@Negraisa2jru wrote:

My mistake it wasn't a loan it was a covid withdrawal.  


Then you need to wait for the 8915-E form to report it.

 


A COVID-19 related distribution is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS. There is no telling how long it will take the IRS to make the electronic form available.

The draft paper form 8915-E is here:

https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers

See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324