1099-R Code M 7

[MGC94]

1099-R for $12,000 coded M 7 and paid it all back. Is she still taxed on the whole thing? 

[MGC94]

Anything?

[sjrcpa]

What's Code M for?

[MGC94]

Qualified plan loan offset

All I know is taxpayer said she paid back the full $12,000

[IRonMaN]

Usually folks don't go back and pay those loans after the fact.  Does your client have checks that were written within 60 days of the "distribution" to prove that the loan was paid back?

[dkh]

  I thought receiving the 1099R with code M7 was due to a loan balance at time of termination of employment.   Does the client still work for the employer the qualified plan loan was with?

[qbteachmt]

Paid it back, where? To whom?

I found this article for you: https://www.irahelp.com/slottreport/what-happens-if-i-terminate-employment-unpaid-401k-loan

You have to know what else transpired: she/he violated the loan arrangement, terminated plan, terminated employee, this employer does not offer repayment window (but that article tells you how to do it for IRS acceptance as a rollover), etc.