Scott Posted October 10, 2003 Posted October 10, 2003 A 401(k) plan is subject to the QJSA rules. Thus, spousal consent is required for loans. The sponsor has discovered that a number of loans have been made without the requisite spousal consent. What is the correction for this? Rev. Proc. 2003-44 addresses the failure to obtain spousal consent, but provides that the correction is to give the participant a choice between providing consent for the distribution or receiving a QJSA. That doesn't seem to fit in the loan context. Any thoughts?
E as in ERISA Posted October 10, 2003 Posted October 10, 2003 Off the top of my head, my view is that "correction" isn't necessary until you have a distribution (including offset or deemed distribution of the loan).
Blinky the 3-eyed Fish Posted October 10, 2003 Posted October 10, 2003 Why not just attempt to obtain spousal consent now? Maybe you will get it for all the loans made. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
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