BenefitsLink logo
EmployeeBenefitsJobs logo
Get the BenefitsLink app for iPhone and iPad LinkedIn
Twitter
Facebook
Search the News


Featured Jobs
Retirement Plan Field Representative
401(k) Support Administrator
Retirement Plan Administrator
Vice President, National Accounts
Internal Sales Consultant
Defined Contribution Client Manager
Regional Sales Consultants
Defined Contribution Plan Administrator
Benefits Account Manager & Team Lead
Compliance Specialist, Employee Benefits (Health & Welfare)
Retirement Plan Services Administrator
Search all jobs
 

 
 
 

Jump to content


Photo

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.


#2 WDIK

WDIK

    Registered User

  • Sitewide Moderator
  • 2,113 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

mbozek

    Moderator

  • Sitewide Moderator
  • 5,204 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.
mjb

#4 buyertoday

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.

Thanks.