If you took a loan from 401K and paying yourself back thru payroll deduction where do you put this?

franklincart · ‎June 5, 2019

SteamTrain · ‎June 5, 2019

You don't.

If done as a true arranged loan, you don't get a 1099-R for the loan, and you don't enter your payback $$ either. It's just a loan.

If you default on the loan, or leave the company without paying every $$ back within a very short time (a month or two if I recall)….then the unpaid balance will become a 1099-R distribution that will have to be reported on that year's taxes

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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SteamTrain · ‎June 5, 2019

You don't.

If done as a true arranged loan, you don't get a 1099-R for the loan, and you don't enter your payback $$ either. It's just a loan.

If you default on the loan, or leave the company without paying every $$ back within a very short time (a month or two if I recall)….then the unpaid balance will become a 1099-R distribution that will have to be reported on that year's taxes

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

VolvoGirl · ‎June 5, 2019

When the 401K contributions (or loan payments) come out of your paycheck they are already deducted from your gross wages on your W2 box 1 and you can’t deduct them again.

If you took a loan from 401K and paying yourself back thru payroll deduction where do you put this?