I took out a loan against my 401k Jan 2007. I applied for SS disability in August 2007 and was approved. I learned of this in March 2008. I quit paying on the loan in Jan 2008. Not enough money to live and subsequently filed bankruptcy in Mar 2008. Fast forward to the present, the loan will now be reported to the IRS as income for 2008. In 2007 I withdrew money from my 401k and my ira to live on. They were reported as income but since I was disabled I did not have to pay the penalty. But I'm not so sure of the this loan since the time lapse when I took out the loan(Jan 2007) and when I started receiving SS disability (dec 2007). Does the disability extend for the entire yr (2007)? Or only Dec? I am drowning in this> right now w/out the penalty I owe $8600. For Federal