No. of Recommendations: 2
I can continue to max out my 401k.

Does it have a due within xx days upon termination clause?

I have the choice of 5 or 7 year repayment for the 401k.

Loans from qualified plans (including 401(k)s) for anything other than the purchase of a principal residence are allowed to have a maximum of 5 years to repay, so either your plan isn't truly a 401(k)/qualified plan, but rather is some type of non-qualified employee retirement plan that allows for loans, or it is violating the rules for a qualified plan, and is in danger of being declared out of compliance. From the IRS website https://www.irs.gov/retirement-plans/retirement-plans-faqs-r...

A plan that provides for loans must specify the procedures for applying for a loan and the repayment terms for the loan. Repayment of the loan must occur within 5 years, and payments must be made in substantially equal payments that include principal and interest and that are paid at least quarterly. Loan repayments are not plan contributions.
(Reg. Section 1.72(p)-1, Q&A-3)

A loan that is taken for the purpose of purchasing the employee’s principal residence may be able to be paid back over a period of more than 5 years.
(IRC Section 72(p)(2)(B)(ii); Reg. § 1.72(p)-1, Q&A-5,-6, -7, and -8)


AJ
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