To BenefitsLink Home Page
To EmployeeBenefitsJobs Home Page
Get the BenefitsLink app for iPhone and iPad LinkedIn
Search the News

Featured Jobs
Benefit Group: Sales Manager
Plan Administration/Employee Benefits/Sales Support
Legal & Compliance Specialist
Retirement Plan Administrators
Conversion Manager
Conversion Consultant
Documents Coordinator
Plan Consultant
Plan Administrator II
Conversion Specialist
Retirement Leaders
Actuarial Consultant
Relationship Manager
ERISA Attorney
Account Manager
Employee Benefits Sales Consultant
Associate Vice President & Regional Sales Consultant
Search all jobs


Jump to content


loans from DB plans

  • Please log in to reply
3 replies to this topic

#1 k man

k man

    Registered User

  • Registered
  • 674 posts

Posted 19 October 2004 - 02:42 PM

can someone explain how loans in DB plans operate? my main question is how do you account for it if there is no account balance?

Edited by k man, 19 October 2004 - 02:59 PM.



    Registered User

  • Sitewide Moderator
  • 2,109 posts

Posted 19 October 2004 - 03:09 PM

The amount of the loan available ties in with the participant's vested present value of accrued benefit. The loan itself is considered an asset of the trust in general rather than being "assigned" to that participant's benefit.
...but then again, What Do I Know?

#3 mbozek



  • Sitewide Moderator
  • 5,142 posts

Posted 21 October 2004 - 11:34 AM

Some fids require that the employee pledge assets to secure the loan in case of a default because plan funding would be affected if the loan cannot be paid as opposed to merely reducing the participant's account.

#4 buyertoday


    Registered User

  • Registered
  • 10 posts

Posted 22 October 2004 - 02:06 PM

In certain circumstances, our DC plan will allow for a rollover of the acct. balance with the loan from another company's DC plan.

Is anyone familiar with allowing a loan rollover from a DB plan into a DC plan?
How does this operate? Our recordkeeper has never experienced this either.