Can you clarify how the rollover of an offset distribution should occur? If I'm understanding your response, I only need to start an indirect rollover with the new plan custodian (fidelity) but just make sure they record it is a rollover of an offset distribution. And I don't need to involve the old plan custodian (vanguard) in this part of the rollover process if they have already completed the offset distribution and report no outstanding loan.
For context here, I had a 401k with an outstanding loan and was terminated. It has been more than 60 days and Vanguard has completed an offset distribution. I am now trying to "repay"/rollover the outstanding loan into my new 401k with Fidelity and it is still before the tax filing deadline. As I understand it, I have the option to: 1) complete an indirect rollover of the offset loan, and 2) complete a direct rollover of the remaining 401k balance; for part 1 I can work directly with Fidelity only and for part 2 I need to initiate with Vanguard. Does that make sense and sound right to you?
