COnverting Loans During a Change of Recordkeepers and Impact on Amortization Schedules

[Guest andmik]

Hello,

Hoping someone might be able to provide some insight.

A plan converts from one recordkeeping vendor to another. In setting up the existing loans that are being converted, the amortization schedules do not identically match the initial schedules probably due to a minor difference in calculators in the two systems. The result is that interest credited is a small difference each period (from $.01 to $1.00). This results in an underpayment or overpayment by (for the most part) a few dollars of interest at the end of the loan.

Has anyone ever run into this?

Although I have found nothing to support it, do you think the IRS would be overly concerned in this instance of a participant paying themselves a few dollars more or less in total interest due to the system differentials in converting the loan?

Any feedback will be greatly appreciated.

Sincerely,

Andmik