3444360
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

What if I paid back my 401k before the deadline to avoid paying taxes? 1099-R

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Vanessa A
Expert Alumni

What if I paid back my 401k before the deadline to avoid paying taxes? 1099-R

Was this an actual loan when you withdrew it or was this a withdraw and then you paid it back?  If you received a 1099-R what is the code in box 7?

 

If you paid back a loan that was an actual loan, then you would not receive a 1099-R and this would not be a reportable transaction. Meaning there is nothing for you to do tax wise for this loan.

If this was a withdraw that you did in January, and then you put more money in in August, this would be considered a distribution and would be taxable, Unless you used the money for a reason that is on the exception to penalty list, you cannot avoid paying taxes on it.  

If you took the money out and then put it into another 401K within 60 days, that would be considered a rollover and would not be taxable.  TurboTax will guide you through the steps to show it as a Rollover on your return. 

If you have a 1099-R, as you walk through the steps in TurboTax, after entering the form, you will be asked what you did with the money.  In these questions, you will be given the chance to see if you can avoid paying a penalty on the withdraw. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question