Erin L

Thanks! Today we looked a little further and it turns out the ineligible loan was made to the executive director's wife. Going further it appears that the executive director himself took out a primary residence loan in 2021 and then his wife's ineligible loan was also a primary residence loan in 2022.

A participant who terminated in 2017 applied for and was approved for a loan in March 2022. The participant is making repayments on a quarterly basis outside of payroll. The plan document states that loans are allowed to only active participants and repayments must be made through payroll deductions. It turns out that the participant's termination date was not entered into the platform which was what enabled it to be initiated. The Plan Sponsor discovered this during 2023 and wants to know how this gets corrected. Thoughts?