Rollover/Trad IRA - qualified plan participant loan

[Guest 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.

[Guest 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.

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.