I have a loan out on my 401k. In May I was out of work for two weeks and did not receive a paycheck.
So, one payroll deduction was missed of $ 93.61. I received a letter from Wells Fargo regarding the missed payment and that if I did not bring the loan current the loan would default and then become a taxable distribution. The letter stated I should call them, which I did. The person who took my called stated they were unsure how I was to make a payment since this was a payroll deduction and they would call me back, if I had to do anything because is was a payroll deduction. ( The person was not sure) I gave them my cell number.
I received a 1099R so obviously the loan was deemed. I called 401 K and stated they were supposed to call and tell my how to correct the problem. They are telling me they call a office number at my work and left a detailed message on how to correct the matter????I did not get that message.
They are telling me there is noting that can be done once the loan is deemed.
Can anything be done so I do not have to pay the tax on the loan????I am still making payment via payroll deductions.
