I am leaving my company — what happens to my 401(k) loan?

If you are leaving your company, you will need to confirm what you would like to do with your outstanding loan balance before distributing your remaining account balance. 

  • You can pay off the loan in full no later than 90 days from your dismissal date with the company and avoid a taxable distribution. Be sure to contact our participant support team to request an exact outstanding balance and inform our team once the check is mailed out.

Check Payable Details: BTC for GDL [Your Guideline Account Number] FBO [Your Name]

Check memo line: Loan repayment 

Where to mail the check: 

Benefit Trust Company 

PO Box 12765 

Overland Park KS, 66282 

  • You can have the total outstanding balance treated as a taxable distribution to you. If you have a loan balance after 90 days of being dismissed, your loan will automatically be considered defaulted. The amount of your outstanding balance will be reported on a 1099-R as a taxable distribution and may be subject to early withdrawal tax penalty if you are under the age of 59 ½. 
  • If you have found a new employment and assuming your new company’s plan accepts loan rollovers, you may be able to rollover the loan directly to your new employer’s plan. Please note that loans from one Guideline account cannot be rolled over to another Guideline account for continued servicing.
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