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March 3, 2025
Question

We got a 1099-R for a loan we took out from husband's retirement to buy a car. We thought this was not taxable, but it shows the entire amount as taxable?

  • March 3, 2025
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    March 3, 2025

    If you received a 1099-R for a loan taken from your husband's retirement account to buy a car, and it shows the entire amount as taxable, it could be due to the loan being treated as a distribution. 

     

    • To confirm whether the transaction was treated as a loan or a withdrawal, contact your investment administrator directly. Here are some steps:
    • For more details, you can refer to the IRS guidelines on retirement plan loans here and the instructions for Form 1099-R here.

     

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