What's the maximum loan limit if I have 401k and 403b with different plan sponsors?

Wait, so does this mean if I have a 401k with my full-time job and a 457 with my part-time government job, they're also combined under the same limit? And what if I paid off a loan already this year - does that still count against me?

Yes, the loan limits apply across all qualified retirement plans, including 401(k), 403(b), and 457 plans. The IRS views them collectively for loan purposes regardless of having different employers or plan sponsors. If you've already paid off a loan this year, the IRS "highest outstanding balance" rule still applies. This means if you had a $30,000 loan earlier this year that you've since paid off, that amount would still reduce your $50,000 maximum for any new loans taken within 12 months of having that previous loan. This prevents people from taking multiple loans in sequence to exceed the intended limits.

Does this taxr.ai thing handle questions about early withdrawals too? I'm wondering if I should do a loan or hardship withdrawal from my 403b for a home purchase.

I'm skeptical about these AI tax tools. How does it actually work? Is it just giving generic advice or does it actually look at your specific situation? My tax situation with multiple retirement accounts is pretty complicated.

Yes, it absolutely handles early withdrawal questions. It can analyze your specific situation regarding a home purchase and compare the implications of a loan versus a hardship withdrawal, including all the tax consequences and penalties you might face with each option. The AI actually reviews your specific situation, not just generic advice. You upload documents or describe your exact scenario (like having multiple retirement accounts with different employers), and it analyzes based on current tax law. That's why it was so helpful for my complicated situation with multiple plans - it spotted things my employer's benefits team missed about how loans aggregate across different plan types.

Wait how does this actually work? I thought it was impossible to reach the IRS. My 401k provider keeps telling me different things than what my tax guy says.

Sounds like a scam honestly. Nobody can magically get you through to the IRS. I've tried calling dozens of times and always get the "call volume too high" message before it hangs up on me.

It's actually pretty straightforward. The service has figured out the IRS phone system patterns and call volumes. When you sign up, they continuously dial the IRS for you using their system, and when they get through, they immediately connect the call to your phone so you can speak directly with an IRS agent. No magic, just smart technology that saves you from having to redial for hours. It's definitely not a scam. I was skeptical too at first, but I went from spending weeks trying to get through to having an actual IRS agent on the phone within a few hours of using their service. The agent confirmed everything about the retirement plan loan limits and gave me the exact references to show my plan administrator.

Does anyone know if there's a minimum loan amount too? My 403b plan documents mention something about a $1,000 minimum but wasn't sure if that was their rule or an IRS thing.

You're right to check the plan documents. The $1,000 minimum is typically a plan-specific rule, not an IRS requirement. The IRS doesn't set a minimum loan amount, but most plans do establish their own minimum (often $1,000 or $500) for administrative simplicity. Individual plans can absolutely be more restrictive than the IRS rules in various ways - they might limit the number of outstanding loans you can have, set lower maximum amounts, restrict loan purposes, or establish different repayment terms. Some plans don't offer loans at all, even though the IRS permits them.

I did last year. Took a loan from my 401k and then 3 months later needed more cash and took one from my 403b. What a headache! Neither plan administrator knew about the other loan and I almost ended up accidentally exceeding the combined limit. Consolidating would have been smarter.

This is such an important point that I wish more people knew about! I had a similar situation where I thought I was being smart by diversifying my loans across two plans, but when my main employer offered me a promotion that required relocating, I suddenly faced the same issue. The accelerated repayment requirement really caught me off guard - it's not something they emphasize when you're taking out the loan. For anyone considering this, definitely factor in job stability and have a backup plan for quick repayment. Maybe keeping the loans smaller or having other liquid savings available would be wise. Thanks for sharing your experience - it could save someone from a really stressful financial situation.

Great question about finding reliable resources! Beyond the AI tools mentioned, I'd recommend checking the IRS Publication 575 (Pension and Annuity Income) which covers retirement plan loan rules in detail. You can also look at IRS Revenue Ruling 2010-27 which specifically addresses the aggregation rules for loans across multiple plans. The Department of Labor's website (dol.gov) also has some good explanatory materials about retirement plan loans under their Employee Benefits Security Administration section. These official sources will give you the exact regulatory language to reference if your plan administrators give you conflicting information. One more tip - when you do speak with plan administrators, ask them to cite the specific regulation they're referencing. If they can't provide that, it might be worth getting a second opinion. The loan aggregation rules are pretty clear in the tax code, so there shouldn't be much ambiguity about the $50k combined limit across all qualified plans.

This is all really excellent advice! As someone who's also navigating multiple retirement accounts for the first time, I appreciate how thorough everyone has been with the explanations and resources. The documentation tip is especially smart - I've learned the hard way in other financial situations that verbal advice can be "remembered" very differently later on. Getting everything in writing, especially when dealing with something as important as retirement funds, just makes sense. One follow-up question for the group: when you're documenting conversations with plan administrators, do you find they're generally cooperative about confirming things in writing? Or do some push back when you ask them to email you a summary of what they told you over the phone? I want to be prepared for how to handle that if I run into resistance.