topic Re: 401k loan in Retirement tax questions

401k loan

Negraisa2jru — Thu, 04 Feb 2021 02:05:27 GMT

I took out a 401k loan and I am paying it back. It is on form 1099-r, why I am getting taxed on it if I am paying back a loan from my retirement plan.

Re: 401k loan

VolvoGirl — Thu, 04 Feb 2021 02:08:58 GMT

It should not be on the 1099R. Ask your employer or the plan. Maybe they don't think it was a loan but a distribution. Or you misunderstood something.

Re: 401k loan

macuser_22 — Thu, 04 Feb 2021 02:09:07 GMT

You do not get a 1099-R for loan you are paying back.

What code is on box 7?

Re: 401k loan

Negraisa2jru — Thu, 04 Feb 2021 04:25:21 GMT

My mistake it wasn't a loan it was a covid withdrawal.

Re: 401k loan

macuser_22 — Thu, 04 Feb 2021 04:32:41 GMT

@Negraisa2jru wrote:

My mistake it wasn't a loan it was a covid withdrawal.

Then you need to wait for the 8915-E form to report it.

A COVID-19 related distribution is reported on a new 8915-E form that is not yet available and there is no estimated release date since the form is still in the draft state at the IRS. There is no telling how long it will take the IRS to make the electronic form available.

The draft paper form 8915-E is here:

https://www.irs.gov/pub/irs-dft/f8915e--dft.pdf
https://www.irs.gov/pub/irs-dft/i8915e--dft.pdf

Also to see if you qualify for a COVID-19 related distribution see:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers

See this TurboTax FAQ to sign up for an e-mail when the form is ready.
https://ttlc.intuit.com/community/tax-topics/help/why-am-i-getting-getting-a-10-penalty-on-my-1099-r-when-i-withdrew-fund-during-covid-form-8915-e/01/1842324