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azafar6
Level 2

I have a form 1099-R with code 1M (Qualified plan loan offset). Can anyone describe the complete steps to do rollover to avoid penalty and additional income tax?

 
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macuser_22
Level 15

I have a form 1099-R with code 1M (Qualified plan loan offset). Can anyone describe the complete steps to do rollover to avoid penalty and additional income tax?

Simply deposit the amount of box 1 into your Traditional IRA using other funds and instruct the IRA custodian that it is a code M (Qualified plan loan offset) rollover.    This must be completed by tomorrow (July 15) or an extension must be filed by July 15 that will give you until Oct 15.

 

If you have not deposited the money yet then it is doubtful if it would be timely posted by July 15 at this late date.

 

Enter the 1099-R and indicate that you rolled it over.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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2 Replies
macuser_22
Level 15

I have a form 1099-R with code 1M (Qualified plan loan offset). Can anyone describe the complete steps to do rollover to avoid penalty and additional income tax?

Simply deposit the amount of box 1 into your Traditional IRA using other funds and instruct the IRA custodian that it is a code M (Qualified plan loan offset) rollover.    This must be completed by tomorrow (July 15) or an extension must be filed by July 15 that will give you until Oct 15.

 

If you have not deposited the money yet then it is doubtful if it would be timely posted by July 15 at this late date.

 

Enter the 1099-R and indicate that you rolled it over.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

azafar6
Level 2

I have a form 1099-R with code 1M (Qualified plan loan offset). Can anyone describe the complete steps to do rollover to avoid penalty and additional income tax?

Thank you.

I do not have a Traditional IRA. I only have a 401-K from my previous employer from which I received the form 1099-R with code 1M (Qualified plan loan offset). Can you please suggest a Traditional IRA that I can open online and deposit the amount online as well?

 

I am looking to do the rollover to avoid penalty and additional income tax.

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