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Moira
I had always taken it as "gospel" that if a participant terminated employment and wanted to roll over a remaining 401k plan balance, that any outstanding participant loan would be paid of at the time of the distribution. I am now getting a request from an individual who wants to roll over his entire balance, including the plan loan, to an IRA. Will an IRA accept a qualified plan loan and allow for ongoing repayment? Is this possible? If so, that's fine, I don't know enough about IRA regulations.

Thanks.
Moira
QUOTE (Moira @ Aug 23 2006, 11:11 AM) *
I had always taken it as "gospel" that if a participant terminated employment and wanted to roll over a remaining 401k plan balance, that any outstanding participant loan would be paid of at the time of the distribution. I am now getting a request from an individual who wants to roll over his entire balance, including the plan loan, to an IRA. Will an IRA accept a qualified plan loan and allow for ongoing repayment? Is this possible? If so, that's fine, I don't know enough about IRA regulations.

Thanks.


False alarm - the participant is intending to pay off the loan. The instructions I had were not clear on that issue, but I have gotten that clarified.
jevd
Just as an FYI, An IRA may not accept a participant loan as a rollover.
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