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New Member
posted Jun 6, 2019 12:55:52 AM

I repaid an IRA loan within the 60 day timeframe last year. Should I wait for my 5498 from the Banking institution before filing my taxes? It won't arrive until May.

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1 Best answer
Expert Alumni
Jun 6, 2019 12:55:55 AM

No, you do not need to wait until then. You should have gotten a 1099-R because you took the IRA distribution, please follow these instructions on how to make it a nontaxable rollover since you repaid it within the 60 days timeframe:

  1. Click "Federal" from the left side of your screen
  2. Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
  3. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  4. Click "I'll Type it Myself"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Click "Continue" and enter the information from your 1099-R
  7. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account (or returned it to the same retirement account)”
  8. Then choose “I converted all of this money to another IRA or other retirement account (or returned it to the same account.

6 Replies
Level 15
Jun 6, 2019 12:55:54 AM

IRA loans are forbidden by law.  You took a distribution.

Expert Alumni
Jun 6, 2019 12:55:55 AM

No, you do not need to wait until then. You should have gotten a 1099-R because you took the IRA distribution, please follow these instructions on how to make it a nontaxable rollover since you repaid it within the 60 days timeframe:

  1. Click "Federal" from the left side of your screen
  2. Scroll down and click "Start or Edit/Add" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
  3. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  4. Click "I'll Type it Myself"
  5. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  6. Click "Continue" and enter the information from your 1099-R
  7. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account (or returned it to the same retirement account)”
  8. Then choose “I converted all of this money to another IRA or other retirement account (or returned it to the same account.

Returning Member
Mar 17, 2020 1:48:57 PM

My issue with the last check box is that I did not return all of the money.  It is mixed in with my MDR.

 

So the total distribution still includes the loan.

Expert Alumni
Mar 18, 2020 8:44:14 AM

When you follow the steps above and select that you  "moved the money to the same account" that will open up more questions where you have the opportunity to divide the amount according to what you put back from the total distribution.  

 

Level 1
Feb 21, 2021 3:37:47 PM

bullcrap. as long as you redeposit it within 60 days, it's non-taxable.

Not applicable
Feb 21, 2021 3:59:18 PM

@rogerlmartin no, she's right. There is no such thing as an IRA "loan".  You can sort of skirt the law by returning the funds within 60 days - once per year - thereby affecting an indirect rollover but what you have done is just take advantage of a loophole.  There is not a rule that allows you to borrow the funds for 60 days.  There isn't.  You took a distribution, and then you rolled it over and you did so within 60 days.  It's not a loan that was repaid.  It's just taking advantage of a rule that allows time for a rollover to take place. 

 

No "bullcrap" - loans from IRAs are not a thing.