I have 401K loan and left my job in November. The 60-day repayment date is after Jan 1. If I default, what year is taxed: the year I left my job, or after 60 days?

[breanne-jesionow]

With the tax reform bill, I understand repayments will be due when taxes are filed, rather than within 60 days. Will I be able to pay this later, since the distribution is now after the effective date of Jan. 1, 2018?

[Critter]

It is taxed in the year you default on the loan if you cannot satisfy the loan within the "perfection" period of 60 days. So in your case it would default in 2018.  Check with the plan administrator for confirmation and the payment options available to you if any. 

[dmertz]

Since you have left the company, instead of being treated as defaulted, the plan will generally make an offset distribution to pay off the loan, effectively the same as making a distribution to you which is immediately used to pay off the loan.  If the loan is instead treated as defaulted, the outstanding balance becomes taxable but the loan remains outstanding and continues to be subject to repayment (with the repayments becoming after-tax money in the plan).  An offset distribution is eligible for rollover with 60 days following the declaration of the offset distribution.  A deemed distribution due to defaulting is not eligible for rollover.