Loan from Rollover source before eligible

[Vlad401k]

Just a quick question... I remember reading something about this, but don't remember the source. Can you take a loan out from the rollover source (rollover contribution is made prior to becoming a participant) before meeting the eligibility reqirements? So let's say the company requires you to be employed for 1 year before becoming eligible, can you do a rollover contribution and take a loan from that source, before completing the 1 year of service?

[GMK]

Does your plan document allow persons who are not participants in the plan to do a rollover contribution into the plan?

[Bill Presson]

The document likely allows employees that have not yet reached the eligibility requirements for contributions to be allowed to do a rollover. Almost all the plans we work with allow this, so it's very common.

Unfortunately, almost none of our plans allow loans, so I can't help with that part.

[ESOP Guy]

Your document is going to answer this question. It is not a law question as far as I know.

Does it say an employee or a participant can take a loan?

Does it say you can take a loan from the rollover source or not?

Only you can find the answer to the question you have.

[ForksnKnives]

Of all the plans I have seen I do not recall one that allows an individual who has not met eligibility requirements to take out a loan but I absolutely agree with the responses above that the plan document will address the answers to your specific situation.