Form 1099 R

[Boss816]

Hello,

• I took a loan from my 401k to buy a home Oct 2020. I opted for the loan repayment option, which I did from Oct 2020 until I changed employers July 2023. I didn't receive a 1099-R until this week. My income is greater this year, therfore, I will owe because of the 1099 R. Should I amend my taxes from 2023 to file with the 1099-R? If so, will my previous employer change the form from 2024 to 2023? Thank you in advance!

[dmertz]

What is the year on the Form 1099-R?  The distribution is reportable on the tax return for that year.

What is the code in box 7 of the Form 1099-R?

[Boss816]

The year on the form is 2024 and the code in box 7 is 1M.

[dmertz]

In this case, in 2024 the plan satisfied the loan with a qualified plan loan offset distribution that reduced your balance in the plan.  This distribution is reportable on your 2024 tax return, not on your 2023 tax return.

As a qualified plan loan offset distribution, you have until the due date of your 2024 tax return, including extensions, to come up with some or all of the funds and make a rollover to another qualified retirement account like a traditional IRA.  To do that you need to inform the custodian of the account receiving the rollover that it is a rollover of a qualified plan loan offset distribution.  You would then report the rollover in 2024 TurboTax by indicating the amount of the distribution that was rolled over.