Is an early 401K loan taxable, if i'm making monthly payments to bank? Was late on one payment, but paid within the grace period. I did receive a 1099R.

[Vanessa]

What is the code in box 7?

[jeff-FL]

Any thoughts?  Based on searches in your FAQs and other answers to similar questions, my guess is that it's not taxable. However, also i've seen a few notes on here that suggest it is.  
In box 4 is 10% of the gross distribution. 2a is the same amount as 1.  (if this is helpful)  
Thanks, much appreciated.

[dmertz]

Any code L or M in box 7 addition to the code 1?
Is the IRA/SEP/SIMPLE box marked?
Is Box 2b Taxable amount not determined marked?

Code 1 by itself on a 2018 Form 1099-R that does not have the IRA/SEP/SIMPLE box marked implies a distribution from the 401(k) that has nothing to do with a 401(k) loan.

[jeff-FL]

There is no other mark or addition to Box 7 other than "1"
The IRA/SEP/SIMPLE box is checked "X".
Box 2b Taxable amount not determined is also checked off "X".

thanks!

[dmertz]

This Form 1099-R is reporting a regular early distribution from a a traditional IRA.  It has nothing to do with a loan from a 401(k).  Loans are not permitted from IRAs.

If you deposited any of the money back into the traditional IRA within 60 days of the distribution as a rollover contribution, in the follow-up to entering the details of the Form 1099-R you tell TurboTax that you moved the the money to another retirement account (or returned it to the same account), indicate that you rolled over part of the money, the enter the amount rolled back within 60 days.  Any amount that was deposited into the traditional IRA after 60 days must be entered under Deductions & Credits as a new regular traditional IRA contribution.

[jeff-FL]

I have a Savings Secured Loan with monthly payments. Sorry for confusion based on incorrect terms used on my part.  Is this the distinction that makes the difference?  
Thanks again for the details/info.

[dmertz]

There is a big difference between a loan from a 401(k) and a distribution from an IRA, two totally different things.  I explained that in my answer.

[jeff-FL]

Yes, i used 401k at first, should have used IRA distribution.  So the part i'm stuck on, based on your earlier answer is:  I'm making monthly payments to the bank for a Savings Secured Loan.  Is that the same as "rolling it back into my traditional IRA"?   Sorry if this seems obvious. Thanks for your patience

[fanfare]

you took some money out of your IRA.
This has nothing to do with a loan you took from the bank.
It is taxable income. and a 10% penalty will be added for early withdrawal.

[fanfare]

If this did not happen, contact your bank to correct the error and give you a corrected 1099-R

[dmertz]

Has the IRA been used to secure the loan?  That would disqualify the IRA.

[Vanessa]

If the loan is not in default then no it is not taxable.