topic If you took a loan out from your 401k do you have to file it on your tax return? in Retirement tax questions

If you took a loan out from your 401k do you have to file it on your tax return?

tt162 — Sat, 01 Jun 2019 00:09:28 GMT

If you took a loan out from your 401k do you have to file...

DoninGA — Sat, 01 Jun 2019 00:09:31 GMT

If you took a loan out from your 401k do you have to file it on your tax return?

No. Loans from a 401(k) account are not reported on a federal tax return. If you default on the loan or are separated from the company without paying off the loan, then it is a distribution and you will receive a Form 1099-R. The 1099-R is reported on a federal tax return.

Re: If you took a loan out from your 401k do you have to file it on your tax return?

Jesse_Sanchez — Sat, 01 Feb 2020 18:23:28 GMT

Thank you

Re: If you took a loan out from your 401k do you have to file...

somdgirl63 — Thu, 02 Apr 2020 23:54:37 GMT

I took a loan out of my 401K and then lost my job. I owe less than $10,000. I know this need to be listed as income. However, I also took money out of my Roth IRA (not 59 1/2). Why must the Roth IRA be claimed for taxes if taxes were already paid?

Re: If you took a loan out from your 401k do you have to file...

DianeC958 — Fri, 03 Apr 2020 17:01:41 GMT

Yes, it needs to be listed as income on your tax return if you received a 1099-R for the amount.

If it is a Roth IRA, any amount you contributed to the Roth IRA will not be taxed.

Depending on how long you had the Roth IRA account there may be a 10% penalty for early withdrawal. There also may be tax due if earnings were withdrawn.

The information needs to be reported on your return to make sure there is not a penalty due on the distribution or tax on the earnings.

To enter your 1099- R in TurboTax Online or Desktop (you may need to upgrade to report these distributions), please follow these steps:

Once you are in your tax return, click on the “Federal Taxes”
Next click on “Wages and Income”
Next click on "jump to full list" or “I’ll choose what I work on”
Scroll down the screen until to come to the section “Retirement Plans and Social Security”
Choose "show more", then IRA, 401(k),Pension Plans (1099-R) and follow the onscreen instructions

@somdgirl63

Re: If you took a loan out from your 401k do you have to file...

tcrumedy7 — Tue, 07 Sep 2021 22:10:14 GMT

Hello, I defaulted on two loans during 2020. However I paid back one in full during 2021 and half of the other during 2020. I received a 1099-R for both loans in the full amount taken from my 401K plan. Do I still have to add both amounts of the loans in the full amount to my gross income when filing my 2020 taxes.