401(k) Loan Question
Last year I took out a loan from my 401(k), and apparently the payroll deduction information was sent by the 401(k) company to the wrong department of my employer. Apparently I missed the 'deadline' for catching this and making up the payments. Now I am being told that the loan will be reported as a distribution (penalty + taxes due for 2007) but I'm also being told that I am required to pay back the loan still.
Are there any legal grounds on which I can challenge either of these (I'm thinking no on the distribution reporting)?
I want to know why I could legally be required to pay the loan back if it's already going to be reported as a distribution?
1 Answer from Attorneys
Re: 401(k) Loan Question
You might be able to request a private letter ruling from the IRS, asking whether they will allow you to treat the funds as a loan rather than a distribution. Your tax attorney can help you with this.
Related Questions & Answers
-
5000lb sport utilty vehicle I have a 2003 Lincoln Navagator and use it for my... Asked 12/23/03, 12:49 pm in United States Oklahoma Tax and Taxation Law
-
Exemption Are Muskogee people exempt from all sales tax and federal tax? Asked 5/01/01, 8:05 pm in United States Oklahoma Tax and Taxation Law