I quit my job in November 2019 with an outstanding 401k loan balance. Per plan rules, they say I have 90 days to pay it back or they mark it as a distribution and send that info to the IRS.
When I asked about the new law about having more time to repay it, they had no idea and just referred back to the 90 days plan rules.
I have a new job with a new 401k plan under a new fund management company. My old 401k funds are still with the old company's plan for now.
What are my options for paying back that loan before my taxes are due this year?
Can I roll over my 401k money from my old company into my new company's 401k and then take out a loan from that new 401k to pay back my original loan?
If I don't take out a new loan, can I just write a check to someone for the outstanding loan balance? Can I write that check out to my new company's 401k plan? Should they know how to handle that payment?
Seems everyone I speak to about this has no idea how the new law about this works. I get conflicting answers everywhere. Some people say I have to pay back the loan to my original place or origin (Vanguard) yet others have said I don't have to do that, as long as I put the money into an eligible retirement account, it doesn't matter who facilitates that account.
It would be nice if someone actually knew how it all worked with this new law.
