AboutAllen Expertise Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience Over 35years experience in the pension field
Organizations Various actuarial organizations
Education/Credentials MBA and various professional certifications
Question Allen,
I took out a loan against my 401k plan in 2005 and defaulted on that loan. Since that time, the loan has been re-paid and I have taken out 2 other loans since then which have both been paid back in full. I recently attempted to take out a 3rd loan against my 401k and was that since I defaulted on that loan in 2005, I was not eligible to take out another loan. I explained to them that I had taken out 2 loans since then. They did not know how I was able to receive those loans but continued to state I was not eligible for a loan. Do I have any recourse or anything I can relate to them to be take another loan?
Thanks,
Mark
Answer It sounds like they may have made a mistake when they allowed you to take out the other loans.
You can check on what they are saying by looking at what is known as the loan policy for your plan. You should be able to obtain a copy of the loan policy from the plan administrator.
