Leaderboard

only because it is Friday.... technically, the initial premise is incorrect. suppose you are sitting on Short Line railroad, just 5 squares from GO, collect $200. you roll a double 3, but that is the third double in a row so you go directly to jail. do not pass GO, do not collect $200. that is the rule of Monopoly. the regs are similar, if you don't pass the gateway, that means you never went through the gateway. you never reach nondicrim land. you can't collect $200. Wasn't the IRS clever for choosing such a descriptive word like 'gateway' to describe things. Well, ok, maybe clever is giving them too much credit.

It sounds like this was a prepayment, and that the new payment now would be a prepayment. That usually is permitted under the loan policy and would also not violate 72(p). The loan schedule amortized over 5 years at least quarterly. He's just paying ahead of the amortization schedule.

Make no mistake, DOL puts the onus on maintaining complete and accurate records on the employer, and any situation like this where the employer is lacking records must be resolved in the participant's favor, and court cases have affirmed.