Jim Chad Posted January 19, 2012 Posted January 19, 2012 Does anyone see a problem with the 401(k) loan when the primary residence is changed to a rental? He doesn't want to sell right now because of the market. Second question: Can he take out a second home loan to purchase a home in the town he has been transferred to?
ETA Consulting LLC Posted January 19, 2012 Posted January 19, 2012 Not necessarily. Typically, the requirements apply at the time the loan is issue. It's still secured by 1/2 the loan balance, but the residence requirement allows the payments to extend beyond 5 years. Good Luck! CPC, QPA, QKA, TGPC, ERPA
masteff Posted January 21, 2012 Posted January 21, 2012 Code 72(p)(2)(B)(ii) actually includes the words "(determined at the time the loan is made)". As to more than one residental loan at a time, look to your plan document or plan loan rules. Do you permit multiple loans? Be careful to distinguish whether you permit refinancings versus separate new loans as that may or may not change the outcome. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now