Guest nlamorte Posted October 8, 2010 Report Share Posted October 8, 2010 Company X is terminating their DC (401(k)) Plan and there are outstanding loans. Can employees continue to pay back their loans after the plan termination date, up until assets are distributed? The company will still exist after the plan temrination and will still be issuing payroll checks from which the loan payments would be made (plan also allows for check payments, so payments may also come directly from participant). I cannot find anything in the plan document that governs this and am still looking for the separate loan policy. The bigger question is whether I'll even find anything in the loan policy - i.e. is this even up to the plan sponsor, or do the IRS regs specify whether or not this is allowed? Need answer asap - thanks!!! Link to comment Share on other sites More sharing options...
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