Ed Zollars, CPA wrote:
- quote -

Ed, you see a wider variety of plans than I do, do you have a sense if
this may be changing? I've had a few clients recently whose plans
allowed them to keep loans in place after leaving their jobs. They could
even rollover a portion of the plan assets in the meantime. I don't have
a sense of whether I just happened to hit a couple odd plans or if
there's a trend towards adding that as a feature.

One thing that does seem to be more common is offering a self-directed
401k account as well as the typical list of mutual funds. Maybe that's
because Schwab is in our backyard here in SF but it no longer seems
confined to the "best" employer plans.

-Tad

apala wrote:

- quote -

One huge caveat--virtually all qualified plan loans will provide that
the entire loan is immediately due and payable should you terminate
employment with the employer. And that's true whether you voluntarily
leave employment, are laid off or are fired. If you do not repay the
loan, you will taxable income (plus likely an early distribution
penalty) equal to the amount of the loan.

As well, funds in the qualified plan are *generally* insulated from the
claims of creditors.

--
Ed Zollars, CPA
Phoenix, Arizona