Safeharbor29 Posted May 12, 2015 Share Posted May 12, 2015 Hello, what is the consequence if a plan did not obtain the supporting documentation to prove the loan from the 401k or 403b plan was for the purchase of a primary residence? Is self-correction available? Are there penalties/or filings assessed? Link to comment Share on other sites More sharing options...
QDROphile Posted May 12, 2015 Share Posted May 12, 2015 Is the question about lack of documentation or actual ineligible use of loan proceeds? Link to comment Share on other sites More sharing options...
Lou S. Posted May 12, 2015 Share Posted May 12, 2015 If it is lack of documentation, the correction is simply to get the documentation and retain it. I guess you could call that self correction. If it is that the proceeds were not used for primary residence, the correction is available through VCP. Either through re-amortization over no more than 5 years from the original loan or through loan default for violation of 72(p) if outside the 5 year window from the original loan. Link to comment Share on other sites More sharing options...
Cookflhx Posted October 16, 2017 Share Posted October 16, 2017 What is VCP? Link to comment Share on other sites More sharing options...
K2retire Posted October 16, 2017 Share Posted October 16, 2017 The IRS Voluntary Correction Program. Link to comment Share on other sites More sharing options...
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