Author Topic: will changing providers of a 403B require loan payback?  (Read 925 times)

Longwaytogo

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will changing providers of a 403B require loan payback?
« on: March 10, 2015, 06:11:42 PM »
So the situation is we took out a 403B loan of 21K in June of 2013 for 5 years. Of course one of the downsides of these loans is should you leave your company it would have to be paid back to avoid tax penalty for early withdrawal. But being that my wife is a government employee I figured I did not have to worry about this.

But now they have decided to go from 9 companies to choose from to 1 (fidelity). Since we are not currently with Fidelity I guess we will have to do some type of transfer/rollover. My question is what will happen to the loan? Can I continue my monthly payout until June 2018 or will they make me pay it all back?

I do not/will not have the money in my current situation. If I don't pay it back could I just pay the taxes/penalties on the remaining amount and then just re-start contributions with the new provider?

I'm sure at some point I will need to discuss with her current provider but just curious as the email announcement just came out today. It will not go into effect until January 1st.