May a plan loan be taken to buy out a former spouse's interest in a principal residence? Prop. Reg. 1.72(p)-1, Q&A-8 says refinancing does not generally qualify as a principal residence plan loan. However, if the plan loan is used to repay a loan from a 3rd party, and the plan loan qualifies as a principal residence plan loan without regard to the loan from the 3rd party.

How to analogize?