Here's one I know nothing about.
Apparently when someone properly borrows from his 401-K, and then
leaves his job with that employer, the loan is considered a
distribution unless some arrangements are made within a specified
The time period used to be 60 days, as with other distributions. But
I have been reading that time has been extended for people who leave
their jobs, to April 15 of the following year.
But I can't find where that rule is, and I can't find any reference
to it at all on the IRS website.
The specific question I am being asked is whether the (former)
employer can demand the loan be repaid within 60 days, or whether the
time period has necessarily expanded. My guess is that it is up to
how the plan is written.
- posted 4 months ago
-- Stu http://DownToEarthLawyer.com