At age 72 an i required to draw from 401k ?

[kbq6ug]

if i take a loan against 401k and leave the company and they payoff loan with 401k funds are they taxable?

[VolvoGirl]

Yes it is taxable.  

[DoninGA]

What do you mean, the company paid off the loan with 401(k) funds?

If you did not pay off the loan when you left the company then the loan becomes a distribution to you and you will receive a Form 1099-R for the amount of the unpaid loan.

You report the Form 1099-R on your 2023 federal tax return as ordinary income.

[dmertz · Accepted solution]

You are referring to a qualified loan offset distribution.  Yes a qualified loan offset distribution is taxable unless you can come up with the funds from another source to roll over an amount equal to the offset distribution.  You have until the due date of your tax return, including extensions, for the year of the distribution to complete the rollover of a qualified loan offset distribution.

If you had not reached 73 by the end of 2023, you have no required distribution for 2023.