DC Plan Termination - No Successor Plan - Outstanding Participant Loans
Posted 10 May 2005 - 01:02 PM
Can Company A terminate Company B's plan and what would happen to the outstanding loans?
Posted 11 May 2005 - 07:58 AM
Posted 11 May 2005 - 09:09 PM
Maybe I'm missing something because I'm very tired, but why do you have to consult with the plan documents?
How could you have an outstanding loan continue after the plan is terminated? To whom would the person make the loan repayments?
Wouldn't the continued existence of the loan be fundamentally inconsistent with the termination of the plan?
Posted 12 May 2005 - 10:14 AM
I have seen plan loans transfered to the buyer where the plan loan is rolled into the buyer's plan and payroll deductions continue to be made to repay the loan. I have never seen an IRA provider accept a loan/note in a rollover, but it is theoretically possible.
Hope this helps.
Posted 12 May 2005 - 10:45 AM