Brian Gallagher Posted September 30, 2003 Posted September 30, 2003 I know this has been beaten to death, but I have someone here who insists that loans are taxed twice (I know they're not). Can anyone give me a link to a thread with good examples that they are not. For some reason my salient points are not getting through to this person. Much obliged... Remember: two wrongs don't make a right, but three rights make a left.
QDROphile Posted September 30, 2003 Posted September 30, 2003 How about a brand new point? We don't care if someone thinks loans are taxed twice. Loans are not usually a very good idea anyway, and if mistaken notions of taxation discourage loans, so be it. Plan loans can have a cost that is diffcult to understand and predict. So whay bother engaging anyone on the subject?
Harwood Posted September 30, 2003 Posted September 30, 2003 I always liked this: "It is the opinion of the Department that the primary purpose of a pension plan is to provide the benefit of retirement income, not to make participant loans" ERISA Reg Preambles [Of course I have a plan loan myself]
Brian Gallagher Posted September 30, 2003 Author Posted September 30, 2003 We are in the midst of preparing a quarterly information bulletin for our participants. One of the subjects is that loans are not a good idea. However, one of the reasons they give is that the loan is taxed twice. It's not. My marketing group doesn't believe me. Maybe they'd believe someone else. Remember: two wrongs don't make a right, but three rights make a left.
david rigby Posted September 30, 2003 Posted September 30, 2003 http://www.benefitslink.com/boards/index.php?showtopic=16641 I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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