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Can a safe harbor 401(k) plan allow participants to take loans from th


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Posted

Can a safe harbor 401(k) plan allow participants to take loans from the safe harbor matching and/or nonelective contribution sources?

If not, can the safe harbor required contribution sources be used in determining the maximum loan amount?

Posted

There are not any specific limits on loans from safe harbor contributions. The IRS position is that safe harbor contributions are not eligible for hardships, but loans are available if the plan permits them.

  • 10 months later...
Guest Stacey Bradford
Posted

Are safe harbor contributions subject to the same loan default rules as 401(k) contributions (i.e., no foreclosure until a distribution even occurs)?:confused:

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