Rollover of loan offset amount within 60 days

[Guest LMalone]

If a loan offset is the entire balance and the participant wants to roll the offset amount (using other funds) to an IRA within 60 days of the offset, what documentation will the participant have to provide to his IRA custodian? There will be no check, and by the time 1099's are issued the 60 days will have expired.

I am not in administration, but hopefully, someone who is can help me.

[Guest xplan]

As long as the offset occurred simultaneousley with it being classified as a deemed distribution, the participant may rollover the loan offset amount to an IRA within 60 days of the loan being offset against their account balance. The Form 5498 they receive from the IRA Custodian will indicate that it is a rollover contribution from a qualified plan. This will offset (no pun intended) the 1099-R they receive from the Plan. They will need to supply the IRA Custodian with documentation that it is a rollover of a qualified loan offset amount, in order to effectuate a tax wash.