401(k) Loans and Sell Off

[Guest Sadie4]

If we are selling of a subsidiary of our company through a "stock sell", does this qualify for a distribution and if the employee currently has an outstanding loan what happens if the new 401k plan administrators say they will not let them roll over?

[E as in ERISA]

Unless your plan allows them to continue to make payments while their accounts remain in your plan, then they will be forced to either pay off the loans or have the loan offset (and reported to them as taxable income).