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Can I roll over/transfer a eligible 401k to a IRA that has a loan against it.?

May 23, 2012 by Michael from Stayton, OR
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Brice Thompson, AWMA, AAMS Level 17

Yes, you usually can, but the loan will either need to be paid off or the pay-off amount will be witheld, plus Federal and State Income Tax and a 10% Pre-Mature Withdrawal Penalty on the amount of the loan if you are under 59 1/2 years of age.

Comment   |   Share This Answer   |  Report   |  May 24, 2012 from Columbus, GA

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James P. Dowd, CFA Level 20

Not until you pay off the loan.

Comment   |   Share This Answer   |  Report   |  May 30, 2012 from San Francisco, CA

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