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?

[KatrinaB]

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...