Can you rollover a 401k that has a loan

You can rollover the net 401(k) balance but cannot roll over the loan. IRAs are not permitted to have loans. If you terminate employment where you have the 401(k) loan, many plans will require you to pay the loan in full within 60 days. Any unpaid amount would then be considered a default and treated as taxable income to you in that year.

Normally, a 401(k) loan cannot be transferred to another retirement account. If a plan allows partial rollovers, you may be able to rollover the 401(k) balance minus any outstanding 401(k) loan balance. Some employers do not allow partial rollovers, and you may be required to pay off the 401(k) loan fully before you can rollover the 401(k) balance.

Roll Over 401(k) Loan Or Pay Penalty, Taxes? – Bankrate

Official Site: https://www.bankrate.com/investing/roll-over-401k-loan-or-pay-penalty-taxes/

Normally, you can’t roll over a 401(k) loan, but because your company was acquired and you weren’t terminated, this is an option for you.

However, she took out a participant loan with her previous employer’s 401(k) last year and she still owes $10,000. Her best option is to pay the $10,000 back to the current 401k, rollover the entire $, and then take a new participant loan from her Solo 401k. Because Sue would rollover the lump sum without an outstanding loan, she could take another loan

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3 Things You Should Know Before You Rollover Your 401k Video Answer

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