jmartin Posted July 29, 2014 Share Posted July 29, 2014 I have a 401k plan that excludes union. there is a participant who entered the plan (and accrued a balance) but recently joined the union. As a result he is no longer allowed to contribute 401k. Can the participant still take a loan? I don't see anything in the loan program that indicates union or any excluded participant cannot. My thought was that since he is still considered a participant, he would be allowed. Link to comment Share on other sites More sharing options...
QDROphile Posted July 29, 2014 Share Posted July 29, 2014 I would expect to find language in the plan document or loan policy that says that parties in interest are eligible for loans. Link to comment Share on other sites More sharing options...
MWeddell Posted July 30, 2014 Share Posted July 30, 2014 If the plan allows loans, then the union participant must be allowed to take a loan or else you will have violated the prohibited transaction exemption that allows loans. Link to comment Share on other sites More sharing options...
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