401k loan offset and multiple1099-Rs

ladsgd · ‎March 24, 2026

Hi - I Left my employer with 18,125.48 401k loan balance that was offset. I received 3 1099-R. One for the full 18,125.48 with 18,125.48 in box 2a with box 7 code 1M. A 2nd one for 10,929.66 with 10,929.66 in box 2a and box 7 code M1. A 3rd 1099-R for 7195.82 with $2822 in box 2a, 4373.82 in box 5 and box 7 1B. The totals in box 2a from 2 and 3 equal the 1st 1099 of 18125.48. It looks like the full amount was split between my traditional and Roth 401ks. When entering into turbo tax it is adding all 3 together so it looks like I was disbursed / taxable amount of 31,877.14 (total of all three forms box 2a) which is not correct. How do I enter these to show the distribution of 18125.48? Thanks!!

MaryK4

It looks like the 1099-R with the full amount ($18125.48) is the total, and the other two have the amounts that you report to the IRS. You should contact the plan administrator and ask if this is the case, and request that the one with the full amount be corrected (they may or may not do it, but you should ask). For your tax return, you can enter the two 1099-Rs. Please save copies of all three 1099-Rs and any other documentation you have with your tax records in case they do not make the correction and the IRS picks up the underreported income.

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dmertz

The plan messed up the reporting unless the plan voided 1099-R #1 or they voided 1099-Rs #2 and #3.

You'll need to check with the plan to find out what was actually reported to the IRS by them. If they actually reported all 3 to the IRS, they offset your plan loan twice.

Check your balances and plan statements for the traditional and designated Roth accounts in the plan to see which account(s) the offset funds actually came from. If the balance in the designated Roth account shows that no funds came from that account to satisfy the loan, 1099-Rs #2 and #3 are wrong. If $7,195.82 did come out of the designated Roth account, it's likely that 1099-R #1 is wrong. (Make sure that the amount that came out of the traditional account wasn't $18,125.48 plus $10,929.66.)