BG5150 Posted October 20, 2021 Share Posted October 20, 2021 Did the plan need to have loan provisions already in place before they issued CARES loans? We have a client that issued an $80,000 loan without having a loan provision in the plan. Could we retroactively amend the plan to allow for loans? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
RatherBeGolfing Posted October 20, 2021 Share Posted October 20, 2021 The plan had to allow loans first since CARES temporarily increased the limits rather than establish an additional type of loan. I think retro amendment is ok as long as long as the loans were made primarily to NHCEs. Luke Bailey 1 Link to comment Share on other sites More sharing options...
CuseFan Posted October 20, 2021 Share Posted October 20, 2021 Agreed, that's one of the correction actions that you can do via amendment. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
BG5150 Posted October 20, 2021 Author Share Posted October 20, 2021 Thanks. Now it looks like there's a resolution to add loans int he file, but no formal amendment, SMM or anything like that. Plus, I don't think there was any sort of loan documentation created when he took the loan. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Bird Posted October 21, 2021 Share Posted October 21, 2021 minor details 😀 Ed Snyder Link to comment Share on other sites More sharing options...
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