topic 401k default loan w/Vanguard and new company rolled it over within a month and paid off loan from my old company 401 (also w/vanguard). is there penalty? in Retirement tax questions

401k default loan w/Vanguard and new company rolled it over within a month and paid off loan from my old company 401 (also w/vanguard). is there penalty?

kerfree0898 — Tue, 04 Jun 2019 19:40:54 GMT

my box 7 has a 1.

what do you mean by "default loan"? were you in default?

fanfare — Tue, 04 Jun 2019 19:40:55 GMT

what do you mean by "default loan"? were you in default?

The code 1 indicates that the distribution is subject to...

dmertz — Tue, 04 Jun 2019 19:40:57 GMT

The code 1 indicates that the distribution is subject to a 10% early-distribution penalty unless an exception applies. See the exceptions available for qualfied retirement plans:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...