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I thought this was a political post. 😇

https://retirementlc.com/retirement-plans-for-statutory-employees/

Attorney advice is appropriate here. An attorney of my acquaintance has recommended what he calls the "impossibility standard." We use it from time to time when people who have no children elect a dependent care FSA instead of a health care FSA, elect a pre-retirement survivor annuity when they are unmarried, etc. I would think your example would definitely qualify as impossible!

I think a bit of common sense needs to be used, but other than an egregious situation, I see no problem with it. Yes, for example, if you amend the plan to allow loans, one or more HCE's take a loan, then you amend it back out a week later, that's likely a problem. But in general, assuming the loans are available on a reasonably equivalent basis, and both current and effective availability are satisfied, the fact that no NHCE's choose to take a loan does not prevent the plan from amending the loan provision out of the plan. I've seen very few plans that were structured such that removing a loan provision presents a problem.

that At least that's what I remember from half-listening to Derrin's recent webinar.

The RMD is still part of his account balance when he dies, therefore it is payable to his beneficiaries. It is not eligible for rollover as it is still an RMD.

RMD's are not eligible for rollover, ergo are not eligible for conversion/in-plan rollover either.

The loan is the investment. When I take a loan from my plan, the money does not leave the plan; I am just liquidating $50k from ABC Mutual Fund and moving it into a different investment. Instead of moving it into XYZ Mutual Fund, I am moving it into a note that promises 4% interest per year. Repayments are transfers from the loan investment back into ABC Mutual Fund. I hope that makes some sense. Although, it sounds like this individual is struggling with some basic concepts about what a loan is. If I borrow your car for the weekend, can you go for a drive on Saturday night? No, because I have your car. Does the car still belong to you? Of course it does.