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Posted by studiocenter on Oct 1, 2016

Keeping Abreast of Plan Loan Rules

If you have a 401(k) plan, you've likely had participants ask about taking loans from their accounts. If you haven't yet, it is only a matter of time. While the concept of taking a loan is pretty straightforward—you borrow money, you repay it with interest—there are some pretty detailed rules that govern loans in the retirement plan world.

  • Background
  • Loan Requirements
  • Plan Document
  • Loan Policy
  • Maximum and Minimum Amounts
  • Number of Loans
  • Interest Rate
  • Amortization
  • Other Repayment Terms
  • Documentation
  • Conclusion

This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.

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