Rolling over funds from a 401k with an outstanding loan

Can I rollover funds from a 401k with an outstanding loan?

Please check with your current 401k plan administrator:

• Whether your current plan allows for in-service distributions

If not, your plan will not allow you to transfer any cash or assets out of the plan unless the plan or your employment with the company is terminated.

• Your current plan's procedure for repaying the participant loan in full before transferring assets

If your outstanding loan is not paid in full before transferring assets, the outstanding loan balance will most likely be treated as a taxable distribution.