Can loan be taken by spouse of shareholder?

[Guest alwilkins]

I am an employee of an S Corp, of which my husband is the majority shareholder. I own no stock directly. Can I take a loan on my 401(k)? Thanks for your help.

[bzorc]

Through attribution, you are deemed as owning 100% of the s-corp. Therefore, I believe you may not take a loan from the plan.

[actuarysmith]

I concur with the response stated above.

You are deemed to own the stock through attribution for discrim testing, therefore I believe that you would also be deemed to own the stock for purposes of prohibited transactions (such as loans to Sub-S shareholders).