Re-amortizing 401(k) loans is no longer permitted

[Guest Spock]

I am a corporate benefit manager. My 401(k) provider, a large well known mutual fund company, informed me that the IRS no longer permits participants to re-amortize their 401(k) loan. That's news to me; did I miss something? I through a participant could reamortize their (non-principal residence) 401(k) loan as long as they did not extend beyond 5-years from the loan originanation date. Has anybody heard anything that can shed some light on that subject for me?

S

[MWeddell]

It is easier for the 401(k) third party administrator to not have to deal with loan refinancings, but they are still permitted.

Here's an article posted by a law firm just last month: https://www.wnj.com/Publications/The-Benefits-and-Pitfalls-of-Refinancing-401(k)-Pl

[masteff]

Perhaps they're making a semantic between "re-amortize" and "refinance"?

Similar to in the 3rd paragraph on the 4th page of this: http://www.irs.gov/pub/irs-tege/loans_phoneforum_transcript.pdf

[K2retire]

Or perhaps the individual with whom you were speaking doesn't understand the difference between the IRS no longer allowing something and their internal procedures no longer allowing it.