Loan Terms

[zimbo]

A participant purchased a primary residence with his girlfriend. They each owned 50%. Now, six months later, he is acquiring the other 50% from his girlfriend and wishes to borrow from the plan for that purpose.

Does that qualify as a loan used to "acquire a primary residence" which would allow for a greater than 5 year repayment period?

[masteff]

Here's recent discussion on same question w/ respect to a hardship withdrawal: http://benefitslink.com/boards/index.php?showtopic=39058

My opinion is the analysis would apply for a loan as well.

[zimbo]

Thanks for the link. It was right on the topic and confirmed that an acquisition of an additional interest in the primary residence qualifies for the extended loan repayment period.