My wife pulled from her 401k last year but has been paying it back with every paycheck that is auto withdrawal. Does this mean i need to click retirement plan withdrawal?

[Anita01 · Accepted solution]

If this was a loan, meaning she borrowed from her 401k plan, then it would not count as a withdrawal unless she defaults on the payback.

[kdove47]

So since it is being paid back automatically via deduction from each paycheck by employer, that would be a loan, correct?

[Anita01]

Typically it's a loan.  Some employers do take annual contributions to a 401k through payroll, but that amount would be shown as a subtraction from he Gross wages in Box 1 of the W-2 and would be shown as contributions in Box 12.  Loan repayments are not new contributions.