Solved: IF I TAKE OUT A LOAN FROM MY RETIREMENT ACCOUNT AND GET A 1099-R WITH THE DISTRIBUTION CODE M1 IN BOX 7 WILL I HAVE TO PAY A PENALTY FOR EARLY WITHDRAWL?
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IF I TAKE OUT A LOAN FROM MY RETIREMENT ACCOUNT AND GET A 1099-R WITH THE DISTRIBUTION CODE M1 IN BOX 7 WILL I HAVE TO PAY A PENALTY FOR EARLY WITHDRAWL?

 
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IF I TAKE OUT A LOAN FROM MY RETIREMENT ACCOUNT AND GET A 1099-R WITH THE DISTRIBUTION CODE M1 IN BOX 7 WILL I HAVE TO PAY A PENALTY FOR EARLY WITHDRAWL?

A code is M1 in Box 7 indicates a early distribution and a qualified plan loan offset . If you are under the age of 59.5 years old you will be assessed  the 10% penalty when your taxes are calculated.

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Level 3

IF I TAKE OUT A LOAN FROM MY RETIREMENT ACCOUNT AND GET A 1099-R WITH THE DISTRIBUTION CODE M1 IN BOX 7 WILL I HAVE TO PAY A PENALTY FOR EARLY WITHDRAWL?

A code is M1 in Box 7 indicates a early distribution and a qualified plan loan offset . If you are under the age of 59.5 years old you will be assessed  the 10% penalty when your taxes are calculated.

View solution in original post

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