Mark Smith borrowed $21,000 from his employer's plan. When he left the employer in May, 2021, the loan had an outstanding balance of $7000. Without regard to the loan, his account had a balance of $42,000. He requested a total distribution from the plan to be directly deposited to his checking account. He received a form 1099-r reporting the distribution. Box 1, gross distribution $42,000, Box 2a Taxable amount $42,000, Box 4 federal income tax withheld, $8400.

What amount was directly deposited?

1.$26,600

2. 33,600

3. $35,000

4. $42,000