TPApril Posted February 26, 2021 Share Posted February 26, 2021 This post is exclusive of anything related to CARES Act. I feel like I saw some headlines going back to 2019 indicating that loan payment rules were being relaxed, such as longer periods to either pay back to the plan or roll the amount into an IRA, or pay by check once terminated into the plan, but perhaps I dreamed it? Just curious, has anything to that effect been enacted? Link to comment Share on other sites More sharing options...
Lou S. Posted February 26, 2021 Share Posted February 26, 2021 Qualified Participant Loan Offset (QPLO)? That was effective 1/1/2018 so not that new but not that old either; is that what you are thinking? Qualified loan offset is when you offset a loan due to termination of employment or plan termination. In those cases the participant has until the extended due date of their tax return (10/15 following the year of offset) to rollover the balance to IRA or qualified plan instead of the usual 60 days. You add the Code "M" to the 1099-R to indicate QPLO. Other than CARES I can't really think of any other recent loan changes or guidance. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted February 26, 2021 Share Posted February 26, 2021 The final regulations for qualified plan loan offsets were published and made effective Jan 6, 2021, that might be what you were thinking of. https://www.federalregister.gov/documents/2021/01/06/2020-27151/rollover-rules-for-qualified-plan-loan-offset-amounts Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
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