I took a loan out from my 401k. I am up to date on payments,payroll deducted. I received a 1099-R form for the loan amount. Do I claim this as income?

[macuser_22]

What code is in box 7?

[macuser_22]

That indicates a early distribution.    As the answer below said, contact the 401(k) administrator if that is not correct.

[twest4005]

Thank you! I’ll call to get it corrected..

[DS30 · Accepted solution]

No - Since you only took a loan on your 401(k) and not a distribution, you should not have received a 1099-R and would not need to report this loan as taxable income on your tax return.

However, if for some reason (like termination of employment) caused the loan to be reclassified as a distribution, then you will need to include the full amount being reported on Form 1099-R as part of your taxable income.

You will need to contact your 401(k) administrator to see why a 1099-R was issued and have them send you a correctly 1099-R statement before you file your tax return.