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Refund of Plan Loan Interest


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Hi. Our prior retirement plan provider (VALIC) sent us two small checks (one for $1 and another for $17) stating that they charged the wrong interest rate on escrow amounts held under the contracts which were securing outstanding loan amounts under the plan. Thus, they are refunding for the participants that were affected. Does anyone have guidance on what to do with these checks? There is no indication about who these relate to.

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Do people concur that:

Considering the $1 and $17 amounts described (or the sum of them), a prudent fiduciary might put no effort on trying to allocate an amount to an individual?

A prudent fiduciary may apply the $18 toward meeting the plan’s expenses?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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2 hours ago, Peter Gulia said:

Do people concur that:

Considering the $1 and $17 amounts described (or the sum of them), a prudent fiduciary might put no effort on trying to allocate an amount to an individual?

A prudent fiduciary may apply the $18 toward meeting the plan’s expenses?

Yes. This is a case of doing whatever is easiest. Throwing them in the trash would be ok except that whatever computer spit them out will do it again.

Ed Snyder

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