in-house ERISA

Thanks very much, ESOP Guy. Your answer makes sense to me. Appreciate the insight.

If an alternate payee is also a participant in the 401(k) plan that is subject to a QDRO (i.e. the divorcing couple work for the same employer and both participate in the same plan), must the plan create a separate account for the alt payee, or may the plan transfer her QDRO award into her existing account under the plan? Thanks for any insight on this issue.

Thanks for your thoughts. I would be concerned that if the automatic stay did apply (so that loan repayments stop), but there is no ability to also delay or stay defaults, the participant could face a tax consequence (deemed distribution) through no fault of his/her own. Any additional thoughts would be welcome! Thanks

Thanks for your input

Many of our clients plans permit participant loans to be repaid through "home bill" or "direct bill" (i.e. non-payroll deduct). Is there a best practice for handling an automatic stay issued pursuant to a Chapter 7 or 13 bankruptcy filing in connection with these type of loan repayments? We understand the bankruptcy code (section 362(b)(19) exempts payroll deduct loan repayments from the automatic stay, but the code is silent on non-payroll deduct repayments. Does that mean non-payroll deduct loan repayments are subject to the automatic stay? If so, are defaults suspended too during the stay? Thanks!