I took out a loan for $5,000 from my previous employer and paid back $2,000. When I left that employer I still owed $3,000. Which I never paid back. Last year I received a 1099-R that indicates the taxable amount which I reported on my taxes. This year I have received the same form. Why am I being taxed on this loan again? Will I be taxed every year and if so how long?


Thanks :confused:

Assuming you left your old job in 2007, in Jan 2008 you should have received a 1099-R that showed a $3000 distribution, and you should have reported that on your 2007 tax return (along with the 10% early withdrawal penalty). There shouldn't be a second 1099-R, UNLESS you took another withdrawl, or you rolled what was left in your 401(k) acount to another account (such as an IRA). Did you do anything like that?

Assuming you left your old job in 2007, in Jan 2008 you should have received a 1099-R that showed a $3000 distribution, and you should have reported that on your 2007 tax return (along with the 10% early withdrawal penalty). There shouldn't be a second 1099-R, UNLESS you took another withdrawl, or you rolled what was left in your 401(k) acount to another account (such as an IRA). Did you do anything like that?

I left my job in 2006 and received a 1099-R for 2007 which I did report on my 2007 tax return. I just recently received another 1099-R for 2008 showing the same amount as the 1099-R 2007. I have not taken any withdrawals, but I am in the process of rolling over my 401k that is still with the previous employer to my current employers 401k plan.

Then there has been a clerical error.

Contact the 401K custodian and show him BOTH Forms 1099-R. Once they realize the error, they should issue a corrected Form 1099-R shoing NO distribution for 2008.