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Level 2
posted Mar 29, 2020 7:08:44 AM

Wife did not pay back retirement loan distribution but did not get 1099R.

My wife decided not to pay back her loan from her 403b in 2019. She got a letter from her company saying she was considered at default which obviously means it's counted as taxable income. But the letter said it was deemed as a distribution effective January 2, 2020.  So it says she'll received a 1099R in January 2021.  So do I declare the income from her loan default for 2019 taxes, or do we wait until we receive the 1099R in 2021 and file it for 2020 taxes?  

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1 Best answer
Level 15
Mar 29, 2020 7:11:21 AM

The distribution will be reported on your 2020 tax return that you file next year in 2021.

1 Replies
Level 15
Mar 29, 2020 7:11:21 AM

The distribution will be reported on your 2020 tax return that you file next year in 2021.