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Participant Loan Program


austin3515
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Can someone please explain to me when/if a client needs to provide participants with a copy of a loan program.  Is it solely upon request?

Relius's 401k documents seem to include all relevant provisions in the SPD BUT for some reason the 403b document does not.

Just curious what the rules are concerning this stuff.

Austin Powers, CPA, QPA, ERPA

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Availability of loans is a benefit, right or feature subject to nondiscriminatory availability. If participants are not aware of the loan provisions in the plan, then it can not be effectively available to them.

ERISA sec 102 only says that a SPD "shall be sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of their rights and obligations under the plan." While it doesn't specifically say that a loan program has to be included, I would think a "sufficiently comprehensive" document should include it.

Have you asked Relius about the difference in their 401(k) and 403(b) documents? What did they say?

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

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34 minutes ago, C. B. Zeller said:

Have you asked Relius about the difference in their 401(k) and 403(b) documents? What did they say?

I will certainly let you know when they respond.  But their SPD definitey says "you can get a loan and if you want the loan program ask for it."  So perhaps the only mandatory disclosure is the existence of a loan program in the first place and not any of the details.

Austin Powers, CPA, QPA, ERPA

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46 minutes ago, BG5150 said:

The question is:  why were you working on the Sunday of a holiday weekend at 11 AM (EDT)?

The funny thing is when I read this I was thinking, "that's odd, because it was really Monday that I worked?".  But wait, it was only varied by the degree to which I was working!

Austin Powers, CPA, QPA, ERPA

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