When I worked for Employer A I took out a 401k loan to purchase a primary residence. Now I work for Employer B and wanted to rollover my 401k. In order to do that I had to pay the balance of the 401k loan. I did so using the funds from an annuity I have that was created from a pension payout from a previous employer. To avoid early withdrawal penalties my goals was to take out a 401k loan with Employer B and repay the annuity before 60 days. Due to a series of missteps with Employer A's administrator the 60 days have nearly lapsed. They've offered to write a letter detailing their missteps but I'm not sure if that helps with the IRS, and then the plan with the annuity said there would not be a tax liability or early withdrawal penalties, but my financial advisor said there would be. Please advise. I tried to repay the loan and stayed on top of the administrator but their mistakes cost me precious time. Thank you.
you should work closely with your accountant and financial advisor. they have access to all your records. we do not. the IRS has strict rules. i would follow same. ed dimon, esq.
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