We have taken a loan from our 401k. Should this be...
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mtp12570
New Member

We have taken a loan from our 401k. Should this be accounted for as income received even though it's being paid back to the account biweekly?

 
4 Replies
Opus 17
Level 15

We have taken a loan from our 401k. Should this be accounted for as income received even though it's being paid back to the account biweekly?

The loan is not taxable income.  It would only become taxable income if the account holder left their employment and defaulted on the remaining payments.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
VolvoGirl
Level 15

We have taken a loan from our 401k. Should this be accounted for as income received even though it's being paid back to the account biweekly?

Now post back if they send you a 1099R form for it.  Sometimes you think it's a loan but they considered it a distribution.  Did they take any taxes out of it?

mtp12570
New Member

We have taken a loan from our 401k. Should this be accounted for as income received even though it's being paid back to the account biweekly?

No taxes.  We specifically signed up for a loan through Fidelity.  What do you mean by "now post back," please?

VolvoGirl
Level 15

We have taken a loan from our 401k. Should this be accounted for as income received even though it's being paid back to the account biweekly?

Just what you did,  post back as a reply in this forum.  

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