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lloy-baumeister
New Member

If I borrowed money from my 401K which shows up on a 1099-R, but I repaid it within 60 days. How do I enter this in turbo tax to reduce my taxable income?

 
2 Replies
DoninGA
Level 15

If I borrowed money from my 401K which shows up on a 1099-R, but I repaid it within 60 days. How do I enter this in turbo tax to reduce my taxable income?

A loan from a 401(k) account does not generate a Form 1099-R.  You only would have received the 1099-R if you had a distribution from the 1099-R.

What code is in box 7 of the 1099-R?  Is there an amount entered in box 2a?

macuser_22
Level 15

If I borrowed money from my 401K which shows up on a 1099-R, but I repaid it within 60 days. How do I enter this in turbo tax to reduce my taxable income?

What is the code on the 1099-R box 7?    Is the IRA/SEP/SIMPLE box checked?

 

You cannot normally "borrow" money from a 401(k) unless you take a loan from the plan and a 401(k) loan is not reported and cannot be rolled back but it can be paid back and that does not produce a 1099-R.   Most plans do not permit taking distributions and then rolling them back.

**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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