### Question
How is the "qualified plan loan offset amount" defined?


### Answer
The term **qualified plan loan offset amount** is defined in *26 U.S.C. § 402* as follows -

> a plan loan offset amount which is treated as distributed from a qualified employer plan to a participant or beneficiary solely by reason of—


(I) the termination of the qualified employer plan, or


(II) the failure to meet the repayment terms of the loan from such plan because of the severance from employment of the participant

#### Citation:
  - *26 U.S.C. § 402*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

