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New Member
posted Jun 3, 2019 1:07:55 PM

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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1 Best answer
Level 9
Jun 3, 2019 1:07:56 PM

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. 

1 Replies
Level 9
Jun 3, 2019 1:07:56 PM

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.