Question

Form 8915E Coronavirus distributions

Forum|Forum|4 years ago
April 1, 2022
1 reply
0 views

In 2020 I took a 45K loan on my 401K, filled a 8915E form Line 1 - $45000. Line 11 - $15000 also selecting a 3 year payback incase I was laid off before I could repay. I was laid off in 2021 with a total distribution in 2021 of $36549. with a payback to my loan up to that point in 2021 of $4395.00.

Questions:

In 2020 did I pay tax back from my return for the 15K amount listed on line 11?

Is there any way to split the $36549 into the final 2 years lowering my tax basis for 2021?

AmyC

Employee

Can you better clarify what was 1099-R income and when along with how the money is related? You would not have gotten a 1099-R for a loan. You would get a 1099-R for a loan amount that you can't pay back, the 2021 distribution from job loss. Is this all a part of the same $45k? It sounds like this is partially the same money and already being spread out.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

jba3Author

The 1099-r was from the amount of the loan I was unable to repay (36k) . Initially I believed I would be laid off in 2020 and took the loan for 45K expecting to immediately be let go. Turns out I was lucky enough to stay at the job until early 2021. I knew going into the transaction there would be a tax burden and just wanted to spread it out over 3 yrs. So yes it was all part of the original 45K loan turned to a distribution.

M

MAK70

Unfortunately, because the loan was a deemed distribution in 2021, you cannot designate a Covid Emergency Distribution (because it expired December 31, 2020) @jba3