1099R form tax question?

If you have a loan against a 401k plan and leave the company for any reason you must immediately repay the balance of the loan or it will be subject to both tax as ordinary income and the additional 10% tax for early withdrawal.

There is an exception if you are totally and permanently disabled. That applies to the additional 10% tax only, the distribution is otherwise taxed as ordinary income in nearly all cases.

Here's a link to Form 5329 http://www.irs.gov/pub/irs-pdf/f5329.pdf and the instructions for Form 5329 http://www.irs.gov/pub/irs-pdf/i5329.pdf that should help clear that up.

You may be required to provide proof of your total and permanent disability when you claim that exception to the additional tax.

Good luck.

Yes, disability is not any kind of exemption for this. It may have been a reason for a hardship withdrawal, but since it was a loan, you will have to pay the penalty and taxes.

Anyone reading this, PLEASE, loans out of your 401k are a BAD idea. If you need the money that badly, you can get a hardship withdrawal, if you don't meet that criteria, you should NEVER get a loan!! Bad financial move!

Uh, well you see, you know if you, it could be that................ I ain't got a clue...