I left an employer and had a 401-k loan that I didnot pay off. I received a 1099-R for it, code 1. However when I enter it in Turbotax, my refund does not get reduced. How do I pay taxes on this?
03639
3 Replies
dmertz
Level 15
Jun 1, 2019 12:01:22 AM
Does the Form 1099-R show an amount in box 2a? If box 2a is blank, is box 2b Taxable amount not determined marked?
SamI
New Member
Jun 1, 2019 12:01:24 AM
If you default on your 40l-K loan your distributions to your 40lK and 100% of the amount become "taxable monies" and usually you pay it off through distributions through wages and contributions and by paying a tax each distribution you make.