We took money out of my husband’s 401k in 2020 (he is over 60 so there’s no penalty) and did get a Form 1099-R.
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One thing about 401k loans I didn’t see mentioned above - if you quit or loose your job, the loan is due immediately.
https://www.fidelity.com/viewpoints/financial-basics/taking-money-from-401k
If you take a taxable withdrawal, your husband is going to find out come tax time.
I am sure the rules vary somewhat by provider but, you probably can technically take a loan without your husband knowing. I don’t know your situation but, it doesn’t seem like a good idea.
I’d rather have an uncomfortable conversation like this before taking an action like that.
Good luck.
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Actually that depends on the company and how the loan is structured. We took out a 401K loan for our first house payment and made it for 20 years. My spouse left the company well before that! One thing that was odd, the terms of the loan stated that the loan either had to be paid back in full or monthly.
We also thought of taking out a 401K loan once for a business and it was set up in a way that did not make sense.
Look at the fine print.
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