Question

How do I know if I need to file a 1099-R form?

I had taken out a loan on my 401k so I am just unsure if that would mean I have to file a 1099-R form.

Employee

IF you arrange and actual Loan from your 401k, then you don't report it on a tax return, and no 1099-R is issued to enter on your tax return.

IF you default on paying back the loan, then a 1099-R will be issued for the year in which you default.....don't default.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

1 reply