I separated from my company in June with a 401k loan (in good standing) for a new house, about a $40,000 balance left. My new company did not allow me to start my new 401k until the quarter beginning Oct 1 2019. When I went to rollover the loan, I found out it defaulted on the last day of September, and would be offset.
Can I write my new 401k a check for $40,000 to avoid state / local / early withdrawal taxes? Or am I out of luck since I "defaulted"?
