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?

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Originally Posted by ebaines

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?

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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.