New Code “M” Appearing on Some 1099-R Forms

As required by the IRS, a new “Code M” has been placed on 1099-R forms for individuals who have an outstanding 401(k) Pension Plan account loan (referred to as an offset loan) when they terminate service from the cooperative. 

The intent of the Code M is to note the new extended rollover deadline of the offset loan to the tax filing deadline for the year in which the loan was offset.

No action of benefits administrators or (former) participants is required. NRECA mailed 1099-R forms towards the end of the week of January 21, 2019. Approximately 600 individuals receiving a 2018 1099-R form will have the “Code M.” Participants with questions about tax implications should seek the counsel of a qualified tax advisor.