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Proposed regulations: Rollover rules for qualified plan loan offset amounts

Rollover rules for qualified plan loan offset amounts

The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register a notice of proposed rulemaking (REG-116475-19) concerning the extended rollover period for a qualified plan loan offset (a type of plan loan offset) as enacted by a provision of the U.S. 2017 tax law (Pub. L. No. 115-97) or the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).


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The TJCA contains a provision that extends the period allowed for a qualified plan loan offset amount to be contributed to an eligible retirement plan as a rollover contribution from 60 days to the due date, including extensions, for filing the federal income tax return for the tax year the loan offset occurs. This extension applies to a qualified plan loan offset amount distributed from a qualified retirement plan, section 403(b) plan, or governmental section 457(b) plan solely because of a termination of the plan or the failure to meet the repayment terms because of a severance from employment.

The proposed regulations [PDF 288 KB] provide guidance in a “question and answer” (Q&A) format about the rules for the extended rollover period for a qualified plan loan offset.

Comments and requests for a public hearing must be received by October 5, 2020.

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