IRA Rollovers & Qualified Plan Loans
Are IRA rollovers into a qualified plan eligible for inclusion in the calculation of a plan loan? Assuming the document allows for loans. Or are they excluded for loan purposes.
If the IRA first originated from a qualified plan rollover into the IRA and then was subsequently rolled back into a qualified plan would it be included for loan calculation purposes?
Permalink Submitted by Alan - IRA critic on Tue, 2018-03-13 01:00
They are not excluded. An IRA rollover could increase the plan balance and thereby increase the eligible loan amount. If the plan accepts IRA rollovers from contributary as well as rollover IRAs, either source of the IRA money could be used for a plan loan unless the plan provisions state otherwise.