You'll need to sign in or create an account to connect with an expert.
Since you no longer work for the company providing the 401(k) plan, the plan should have satisfied the loan by making to you an offset distribution. An offset distribution is eligible for rollover within 60 days. However, since you are beyond the 60-day deadline, you cannot roll over the distribution and this distribution is subject to tax and to the 10% early-distribution penalty unless you have a penalty exception that applies.
Regarding possible penalty exceptions:
Since you no longer work for the company providing the 401(k) plan, the plan should have satisfied the loan by making to you an offset distribution. An offset distribution is eligible for rollover within 60 days. However, since you are beyond the 60-day deadline, you cannot roll over the distribution and this distribution is subject to tax and to the 10% early-distribution penalty unless you have a penalty exception that applies.
Regarding possible penalty exceptions:
Not sure if you had a question, but if you default on a 401K loan, it is converted to a distribution (you got the money out of plan) and you should receive a 1099R. If it is an early distribution (you are below normal retirement age), there is also a 10% penalty.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
zimbo102
New Member
maxx1029
New Member
z28baby1997
New Member
TomF52
New Member
Lueraskatrina
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.