AboutShirley McAllister, CPP, PHR Expertise I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension.
I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures.
Please do not ask me homework questions I do not have time to answer them.
Experience 25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations SHRM, APA, I.O.M.A.
Publications I.O.M.A. and BNA
Education/Credentials P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors APA Hotline Citation of Merit for last 8 years.
Question I borrowed $30,000 from my 401(k) in 2004 to purchase a home. Received 1099 for $31,003.01 in 2005 for default. Reported income and paid taxes and penalty. Have since repaid loan. Can I recapture taxes and penalty paid on my 2007 tax return?
Answer Penalties are never recoverable.
If you defaulted and paid taxes on the amount that would mean that you withdrew that amount from your 401k, that is why you received a 1099 for the amount. At that point it was an early withdrawal and not a loan.
I don't understand the part about paying it back. Anything you put in your 401K after the amount was taken out and the taxes paid is just than money in your 401K for retirement.
You will not be able to recover the tax amount nor the penalty amount that you paid.
Sorry I couldn't have better news, but that is how it works.
