B21 Posted January 7, 2019 Share Posted January 7, 2019 If Company A acquires Company B in an asset sale where Company B maintains a 401k plan which Company A does not takeover as part of the asset purchase, is it permissible for a former employee of Company B who had an outstanding 401k loan balance as of the date of purchase which will be offsetted; to obtain a loan from his Company A 401k account & then rollover the amount of the Company B 401k loan offset to an IRA within the permitted deadline (due date for filing personal tax return)? Company A does not accept rollovers of participant loans. I'm thinking this would be allowed because the requirement of a rollover of a loan offset is that the employee must come up with outside funds to be deposited to an IRA or qualified plan to cover the offset amount. Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted January 7, 2019 Share Posted January 7, 2019 Sure. No reason why that wouldn't work as long as you meet each rule. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
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