DGiii

Ahh, okay. Say they do allow for the acquired employees to rollover balances. Would this be allowable since the loan has not yet hit the end of the cure period? My worry was just if this is a common method of solution when things like this happen?

Hello, I am looking into a client who has a loan in a 401(k) retirement plan but they are about to terminate the plan because of an asset sale that happened. The company who acquired didnt take the retirement plan so the plan was being termed. The question being: Can the retirement plan at the new company assume the loan for this participant? Let me know if more information is required. I'm only asking is because the client will be on thin ice if they have that tax consequence... DG