Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
johnessaian
New Member

My father in law took out a pension loan in 2018. However he passed away in September 2018 and the loan was paid off after his death. Do we still pay taxes on this loan?

 
1 Reply
KatrinaB
Intuit Alumni

My father in law took out a pension loan in 2018. However he passed away in September 2018 and the loan was paid off after his death. Do we still pay taxes on this loan?

I am sorry for your loss. Ordinarily, loan proceeds from a retirement plan are not taxable as long as the loan is repaid. However, if an employee leaves the company before repaying the loan the proceeds then the event is treated as a taxable distribution.

Please view the section titled loans in the TurboTax link below.

https://turbotax.intuit.com/tax-tips/retirement/when-to-use-tax-form-1099-r-distributions-from-pensi...

Dynamic AdsDynamic Ads
Privacy Settings
v