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Showing results for tags 'deemed loan'.
Found 2 results
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I can't find guidance in the 5500 instructions or the 5500 Preparer's Manual, so I'm looking for opinions - or maybe something I've missed. Two questions: 1. If the only loans in a self-directed 401(k) plan have been deemed distributed in a prior plan year (not offset), is 10g answered yes or no? For example, the only loan in the 401(k) plan was deemed distributed in 2022 - should 10g be yes on the 2023 Form 5500-SF? 2. Do outstanding balances for loans that have been deemed distributed (not offset) continue to be included in the amount on line 10g? I'm leaning towards yes, and yes, but I have nothing to back me up. Even though they are deemed, they are still participant loans, but since they are no longer reported as assets on the 5500... I'm torn.
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Client took a loan, which subsequently was deemed. Five years later, he paid it back so he could take another loan. The client is 59 ½ and tried to take an in-service distribution of the remaining account value. He was denied the full distribution amount due to the deemed amount that was paid back not being eligible for in-service withdrawal. Has anyone heard of this before?
