In this paper the results of the structural and magnetic investigation of Fe61Co10Y8Zr1B20 alloy after solidification and isothermal annealing was presented. The isothermical annealing was carried out at 700 K for 1 h and 770 K for 3.5 h. For the structural investigation was performed by X-ray diffractometer equipped with a copper lamp. The results of (XRD) measurements showed the material in the state after the solidification and heat treatment is amorphous. Static hysteresis loops and initial magnetization curve was measured using vibrating magnetometer (VSM). The quality and quantity of structural defects in the sample after heat treatment was determined by indirect method using analyze the initial magnetization curve in accordance with the theory of Kronmüllera. These studies have shown that the annealing process has big influence to change significantly quantity of defects in amorphous structure as a result, there are changes of magnetic parameters such as saturation magnetization and field μ0Ms coercivity Hc.