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A good friend is about to leave her work. She has a 403(b) from work with less than $5,000 and wants to roll it over into a traditional IRA. One complication: she has an outstanding loan of less than $1,000 on the 403(b) that she won't be able to pay off before she leaves her job.

1. Does anyone know whether she can still roll over her 403(b) into a traditional IRA even though there's an outstanding loan?

2. Once the 403(b) is rolled over into an IRA, what happens to the loan amount? Can she continue to pay off the loan in the IRA account, or does it get net-ted out in some other fashion?

Thanks in advance for your help.

migoah
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