If you borrow from your 401K but are paying it back is it still considered income if you are paying it back.

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If you borrow from your 401K but are paying it back is it still considered income if you are paying it back.

A loan from your 401k tax deferred retirement account is not reported on a tax return, so it is not income. If you default on the loan then it becomes a withdrawal and is then reported on a federal tax return. A withdrawal is reported with a Form 1099-R.

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If you borrow from your 401K but are paying it back is it still considered income if you are paying it back.

A loan from your 401k tax deferred retirement account is not reported on a tax return, so it is not income. If you default on the loan then it becomes a withdrawal and is then reported on a federal tax return. A withdrawal is reported with a Form 1099-R.

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