loans from multiple 401(k) accounts
If you have multiple 401(k) accounts, can the account owner borrow $50K from each account?
Or, is the total value of the money the account owner can borrow $50K….even if it comes from multiple 401(k) accounts.
Thanks
Permalink Submitted by Michael Peterson on Tue, 2010-07-13 11:54
First off, not all 401(k) plans have loan provisions. So, some of the plans may not even provide for loans.
In addition, normally loans are only available to active plan participants. In other words, it would be very unusual for a plan to permit loans to someone who is no longer an employee of the plan sponsor.
Hope this helps.
Permalink Submitted by Clyde Wolf on Tue, 2010-07-13 23:47
Adding to Mike’s post, the 401k owner should read the Summary Plan Description of each 401k for more information. These SPDs will tell the owner how to get their funds from the 401k. The SPD will also tell you if the distribution from the 401k is taxable or not taxable.
Permalink Submitted by Chris Dime on Mon, 2023-01-23 22:40
So did you ever get an answer. Theoretically could I borrow 100k if it’s 50k from each previous employer?
Permalink Submitted by Alan - IRA critic on Mon, 2023-01-23 23:07
A former employer plan will not provide loans to former employees in almost all cases.