If you take a loan from your 401K, do you consider that a distribution?

arsep81 · ‎January 27, 2026

KrisD15 · ‎January 27, 2026

No.

If you were to break service and don't pay the loan back, the remaining loan balance will be reported as a distribution at that time.

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KrisD15 · ‎January 27, 2026

No.

If you were to break service and don't pay the loan back, the remaining loan balance will be reported as a distribution at that time.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

VolvoGirl · ‎January 27, 2026

You don’t get a 1099R for loans. If you do get a 1099R then the plan considers it a distribution and taxable now. So check with the plan.

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