I took out of my 401k in the amount of $5000 and am paying it back. Wasn't sure how to claim this.

billiejeanv · ‎May 31, 2019

MaryK1 · ‎May 31, 2019

You do not have to add this as income. A loan from a qualified plan (401k) 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 · ‎May 31, 2019

You do not have to add this as income. A loan from a qualified plan (401k) 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"

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I took out of my 401k in the amount of $5000 and am paying it back. Wasn't sure how to claim this.