topic I TOOK MONEY OUT OF HUSBANDS 401K AND USED IT TO PAY OFF A 401K LOAN I HAD. DOES THAT COUNT AS ROLLOVER OR CONVERSION? in Retirement tax questions

I TOOK MONEY OUT OF HUSBANDS 401K AND USED IT TO PAY OFF A 401K LOAN I HAD. DOES THAT COUNT AS ROLLOVER OR CONVERSION?

devon303- — Mon, 23 Feb 2026 13:05:51 GMT

Re: I TOOK MONEY OUT OF HUSBANDS 401K AND USED IT TO PAY OFF A 401K LOAN I HAD. DOES THAT COUNT AS ROLLOVER OR CONVERSION?

VolvoGirl — Tue, 07 Feb 2023 21:04:07 GMT

No. That is a taxable distribution and a 10% early withdrawal penalty if he was under 59 1/2. You should have a 1099R for it.

Re: I TOOK MONEY OUT OF HUSBANDS 401K AND USED IT TO PAY OFF A 401K LOAN I HAD. DOES THAT COUNT A...

JohnB5677 — Tue, 07 Feb 2023 21:04:45 GMT

No, the money you took out is a distribution, and subject to income tax. If your husband is younger than 59 1/2 it may also be subject to a 10% early withdrawal fee. You should receive a 1099-R documenting this.