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This question was posted and answered last week, which was good. This morning I read new tax law info from Kiplinger that says, 401k repayment not income if paid back by due date of your tax return. Is that correct?
Solved! Go to Solution.
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Maybe this will help. https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-...
Here's wishing you many Happy Returns
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"401k repayment not income if paid back by due date of your tax return. Is that correct?"
Yes, that's what I told you in your original topic, here:
No need to start it again.
"But under the Tax Cuts and Jobs Act, you don’t have to pay taxes or the penalty if you repay the loan by the due date of your tax return for the year when you leave your job (including extensions). For example, if you leave your job in 2019, you’d have until April 15, 2020, to repay the loan (or October 15, 2020, if you file an extension)."
Otherwise, the reason it would be reported as taxable income, is that you Took the money, but didn't repay it, so that is the same as Taxable distribution. It is "deemed" to be a distribution.
"Level Up" is a gaming function, not a real life function.
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Oh: "new tax law info from Kiplinger"
TCJA is from Dec 2017. Not really New.
"Level Up" is a gaming function, not a real life function.
