topic 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? in Retirement tax questions

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?

mtp12570 — Mon, 04 Jan 2021 03:44:37 GMT

Re: 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?

Opus 17 — Mon, 04 Jan 2021 04:09:22 GMT

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.

Re: 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?

VolvoGirl — Mon, 04 Jan 2021 04:53:58 GMT

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?

Re: 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?

mtp12570 — Mon, 04 Jan 2021 21:17:23 GMT

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

Re: 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?

VolvoGirl — Mon, 04 Jan 2021 21:20:59 GMT

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