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Loans in 457 Plans?


Guest Brian Cox
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Guest Brian Cox

Are loans permitted in Section 457 Government Deferred Compensation Plans? If so, please provide written information to prove to plan administrator>

Thank you,

E. Brian Cox

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No, 457 plans cannot make loans to participants. In recent private letter rulings, the IRS has been requiring 457 plans to assert that they do not permit such loans. See, e.g., Private Letter Ruling 199932045 (August 16, 1999).

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Employee benefits legal resource site

Employee benefits legal resource site

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