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Trevocm
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Does a 401 k loan count as a withdrawal

 
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Does a 401 k loan count as a withdrawal

No.  A loan from a 401(k) tax deferred retirement account is not classified as a withdrawal from the account.  You will Not receive a Form 1099-R for the loan.

Does a 401 k loan count as a withdrawal

Exception: if you cannot pay the loan back (the loan defaults), then the unpaid amount is considered to be a taxable distribution and you could face a 10% penalty if you are under the age of 59½.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Does a 401 k loan count as a withdrawal

ps....if you do get a form 1099R then it was not a loan but a withdrawal.  Some people in the past have been confused if they took a loan or withdrawal.  

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