sjrcpa
Level 15
06-01-2020
08:20 PM
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It may have been a loan when he first got the money. But when he left the company without repaying, it became a deemed distribution (I may have the wrong term) qualified plan offset (deemed distribution) which is what Code M is. As to how much he spent on medical expenses, you'll need to ask him if you're hoping for the medical expense exception to the penalty.
The more I know the more I don’t know.