Loan rollover to IRA

Hi, 

I believe participants with outstanding loan can rollover their loans to an IRA account, can anyone provide more detail on this? 

See question 2

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans#2

They cannot roll over the 401(k) loan itself as IRAs cannot extend loans, but they may be able to roll over (by contributing their own cash to the IRA) the loan "offset" amount to an IRA along with the rest of their 401(k) distribution. 

If you Google "plan loan offset rollover" there's plenty of good information.

The loan itself cannot be rolled to an IRA as IRAs are not allowed to issue or hold loans.

The outstanding balance of loan can be rolled to an IRA if it is a qualified plan loan offset (QPLO). If it is a QPLO the participant has until the due date of their tax return with for the year of the QPLO occurred to roll the funds to an IRA. They would however have to come up with the funds.

Thank you!

One of the terminating plan that I'm assisting one participants has a balance of $400,100.00 and an outstanding loan of $39,000 all participants are expected to move they funds out by April.   The participant likes to offset this loan amount, and roll it into an IRA. 

Will I be right in saying the actual rollover amount will be $400,100.00 however the total distribution shown will be $439100 including the loan offset amount and the participant has time until 60 days from the date of distribution to rollover the $39000 loan off set amount from his pocket?  

I believe the participant will be receiving two 1099-R one for the distribution "G" and one for the loan off set amount "M" or "M7" depending on the age.  Correct? 

Since the plan is terminating, the participant will have a Qualifed Plan Loan Offset.  They will have up to the due date of their tax return (plus extensions) roll the loan amount. https://www.federalregister.gov/documents/2021/01/06/2020-27151/rollover-rules-for-qualified-plan-loan-offset-amounts.  You are correct, the particpant will receive a 1099R for the regular rollover and another one for the QPLO, reflecting that the loan qualifies for the QPLO rules.