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paying back a loan to a qualified 401k

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ByBill

L1: paying back a loan to a qualified 401kdo i have to pay back a 401k loan before i can start a72t on a qualified 401k.2003-01-14 09:31, By: Bill, IP: [127.0.0.1]
L2: paying back a loan to a qualified 401kCheck with the 401(k) Plan Adminsitrator – typically the employer.2003-01-14 16:17, By: Gfw, IP: [127.0.0.1]

L2: paying back a loan to a qualified 401kHello Bill:
Technically NO, you do not have to pay back the loan in order to start SEPPs from your 401(k) plan in that a promissory note held in your account is just another 401(k) asset. However, there are potentially three other hurdles that may get in your way:
1. There needs to be sufficient cash assets in the 401k plan in order to make the SEPP payments. If your loan is the major asset in your 401k, this maybe a problem.
2. In order to start SEPPs from your 401(k) plan you must seperate from service, e.g. quit. The plan may have a requirement that 401(k) loans accelerate at termination. For this check with your plan administrator.
3. In order to take SEPPs from a 401(k) plan, the plan must support periodic payments. Some do and some don”t. Again, check with the plan administrator.
TheBadger
wjstecker@wispertel.net

2003-01-14 19:35, By: TheBadger, IP: [127.0.0.1]

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