3 company Controlled group w/ 2 plans

[Guest Amy Marie]

Companies A, B & C form a controlled group. A & B sponsor one 401(k) plan and C sponsors a separate 401(k) plan. Participant Doe worked for C and has a large account balance in C's plan ($45,000). He was recently transferred to Company A and is now contributing to A & B's plan (Account balance = $1,500). Doe has requested a loan from Company C's plan. The plan document only allows for loans to be repaid via payroll deduction (checks are only permitted for prepayment). He is no longer receiving a pay check from Company C. He is only being paid by Company A. Can he take a loan from Company C's plan if he cannot repay it using compensation from Company C? Would he be able to transfer his account balance from Company C's plan to A & B's plan? (He has not incurred a distributable event. He only terminated employment w/ Company C but he's still employed within the controlled group.)

Thoughts?

[QDROphile]

Transfers are possible with appropriate plan terms. Certain rules govern transfers, including fiing with the IRS in advance under certain circumstances (uncommon for defined contribution plans).