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Posted

When a participant rolls their balance to a new employer plan and it includes a loan balance, how is that loan transfer balance reported? I didn't think you could prepare a 1099-R showing a loan as a rollover, or do you show the entire balance as a rollover, code "H"? Thoughts??

Posted

I don't think it is anything that has special rules associated with it. If the loan is part of the rollover, then the loan is treated as any other asset that is rolled over.

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