No, you can not roll the money from one 401(k) to another to pay off a loan. The loan must be paid back with after tax dollars. The only thing you can do is roll the 401(k) with a previous employer to an IRA and then take distributions just large enough to make the loan payments.
You would, of course, have to pay tax and if under age 59 1/2 a 10% penalty for early withdrawal.
I have an existing 401k loan on my primary 401k. I also have an secondary 401k account that I have not rolled over yet. Can I use the secondary 401K to 'rollover' in the primary 401k and thereby paying off the primary 401k loan?
Is it possible?
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