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believe1963
New Member

I took out a loan from my profit sharing retirement plan and I have not received anything from them to file on my taxes! So what do I do before I continue filing my taxes

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MaryK1
Level 9

I took out a loan from my profit sharing retirement plan and I have not received anything from them to file on my taxes! So what do I do before I continue filing my taxes

You do not have to add this as income or report it on your taxes. A loan from a qualified plan is not considered a taxable transaction as long as you are paying the loan back according to the terms of the loan.  Also, if you quit employment it is a deemed distribution and it becomes taxable at your termination. 

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MaryK1
Level 9

I took out a loan from my profit sharing retirement plan and I have not received anything from them to file on my taxes! So what do I do before I continue filing my taxes

You do not have to add this as income or report it on your taxes. A loan from a qualified plan is not considered a taxable transaction as long as you are paying the loan back according to the terms of the loan.  Also, if you quit employment it is a deemed distribution and it becomes taxable at your termination. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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