Guest Hgreer Posted April 2, 2013 Posted April 2, 2013 Does anyone know if there are any provisions stopping a participant from taking out a 401k loan to purchase a property abroad if they provide a purchase contract? I have a participant wanting to purchase a property in Poland. Thanks for the help!
12AX7 Posted April 2, 2013 Posted April 2, 2013 The requirements of Section 72(p) need to be met for a participant to take a plan loan. Provided the Plan Document would otherwise not restrict the purpose of a participant loan, purchase of foreign property should not be an issue. Of course, the loan needs to be repaid according to its terms.
masteff Posted April 2, 2013 Posted April 2, 2013 Unless your plan has restrictions on availability of loans, the only reason you'd care if it's for property (in the US or anywhere) is if the person is wanting a loan longer than 5 years. If that's the case, then it has to be to purchase a principal residence. As said above review the 72(p) Code and Regs as it applies to plan loans for purchase of a principal residence. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
BG5150 Posted April 2, 2013 Posted April 2, 2013 it applies to plan loans for purchase of a principal residence. That would be a heckuva commute from Poland! QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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