Rollover of Loan to Qualified Plan

[Guest andmik]

Hello:

My company acquired a portion of another company and we are not taking or merging any part of the acquired company's qualified plan in the merger.

New employees from the acquired entity are being allowed to rollover to our QP, and if they have an outstanding loan, they may rollover the loan as part of the unrelated rollover.

My question is that when we set up the loan in our plan, I do not think we need to load the highest outstanding balance in last 12 months from the unrelated plan, since when I read the loan regulations, the HOB relates to the HOB from our plan(s), not an unrelated plan that we are not acquiring or merging.

Can someone assist in confirming my thought process?

andmik

[ETA Consulting LLC]

You are correct. That loan doesn't become an asset of that plan until rollover. That establishes the highest balance within that plan. Just ensure that, unlike before, all repayments go directly to the rollover source of funds within the new plan.

Good Luck!

[Guest andmik]

Thanks for your response - I appreciate it.

andmik