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Plan term - roth loan balance


pmacduff
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Participant has an outstanding loan from roth source.  Roth contributions have been in the plan for more than 5 years.  However Participant is not yet 59 1/2 (will be in Sept 2020) for a "qualified" roth distribution.  Plan is terminating.  Participant elects not to pay back outstanding loan balance.

How is that reported on the 1099-R form? 

The plan is an "old" balance forward plan.  Pooled funds that will be liqudated to cash and all participants paid out this year.

Thank you in advance for any and all comments!

 

Should have carefully read 1099-R instructions first...this gets reported/coded like any other roth distribution since the loan will offset, just as a pre-tax loan offset would be reported/coded as a distribution in this instance.

 

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