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Does the 60-day waiting period also apply to loans that are closed as a result of a taxable distribution?

April 26, 2017closed distribution Loans period taxable waiting

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Does the 60-day waiting period also apply to loans that are closed as a result of a taxable distribution?

1 Answer

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10 Posted

No, a different rule applies. If your loan has been declared a taxable distribution for reasons other than separation from service, you are not eligible for a new loan for a period of 12 months from the date of the loan taxable distribution. This rule is not being changed.