Took a 403b loan and missed a payment. now being taxed as disbursement. do I have to pay the tax if there are no exceptions?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

Took a 403b loan and missed a payment. now being taxed as disbursement. do I have to pay the tax if there are no exceptions?

In Turbo Tax you can see if you can reduce the tax burden by using an "Other" category which I tried and it does reduce my tax burden, but is this correct? Will this trigger an audit?
1 Reply
Highlighted
Level 15

Took a 403b loan and missed a payment. now being taxed as disbursement. do I have to pay the tax if there are no exceptions?

The exceptions can only prevent the 10% early withdrawal penalty. There are no exceptions to paying the tax owed on the withdrawal. Without an exception, you may pay the tax and if your were under age 59 1/2 at the time of the withdrawal, you must also pay the 10% early withdrawal penalty.

Privacy Settings