tomaszp

Just a quick update. I wrote a letter to my plan administrator based on your comments. I have just received an email saying that the 1099R has been submitted for deletion and the default has been reversed. They will take their $308 over the next two pay periods. Thank you all for your input! This is victory. tomasz.

Thank you. I will be calling the plan administrator again today armed with better questions thanks to the input in this thread. I'll let you know how it turns out.

Hello! I have taken a 5-week leave of absence in mid-2014. After I returned, the payment on the remained of my 401k loan was adjusted so I figured the loan was re-amortized. Sometime in October, the loan was paid off. However, in November I received a check from the provider for $308. Thinking I have overpaid, I cashed the check without looking too closely at the paperwork. Well, it turns out, my loan went into default in the amount of $308 (the check that they sent me). Sure, the repercussions aren't dire (taxes + 10% on the defaulted amount will be about $130) but I'm still a bit upset because it's MY $130 and THEIR fault (or at least deep in my heart, I feel it's their fault ). Is there anything I can do to rectify this? Can I paid that $308 back before April 15, 2015 and not pay taxes on it? Also, since the existing loan shows in default state, I'm barred from taking out another until I pay it off in which case I'd be paying taxes on this money twice. Yikes! Any input appreciated! tomasz.