Jump to content

Pre prop reg loan now in default -- advice on effective date of prop r


Guest Matthew Newman
 Share

Recommended Posts

Guest Matthew Newman

I have a client with a 401(k) plan (no hardship distribution provision). One of the participants just missed his second quarterly loan payment in a row. The loan policy in place for years wasn't followed -- it provides that the plan administrator is to provide notice and an opportunity to cure. If we don't use the proposed regulations (1.72(p)) is it possible that when final regulations are issued that this will be treated as a deemed distribution, regardless of how the plan administrator handles this file? Any advice on this whole situation would be appreciated.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...