Felicia Posted April 7, 2000 Share Posted April 7, 2000 Can a person take a loan from a 403(B) plan if the plan only has salary deferral money? Cites would be helpful. Link to comment Share on other sites More sharing options...
Ellie Lowder Posted April 10, 2000 Share Posted April 10, 2000 Loans from 403(B) elective deferral plans are permitted, provided that the 403(B) account includes a loan provision. In a non-ERISA plan, the participant requests the loan. Loan Code Section is 72(p). There are also proposed regulations - and the IRS has finalization of those on their business plan list for 2000. Link to comment Share on other sites More sharing options...
Ellie Lowder Posted April 10, 2000 Share Posted April 10, 2000 Loans from 403(B) elective deferral plans are permitted, provided that the 403(B) account includes a loan provision. In a non-ERISA plan, the participant requests the loan. Loan Code Section is 72(p). There are also proposed regulations - and the IRS has finalization of those on their business plan list for 2000. Link to comment Share on other sites More sharing options...
MWeddell Posted April 18, 2000 Share Posted April 18, 2000 Often loans may be available on a more favorable basis from a salary-deferral only 403(B) plan. That type of plan is unlikely to be subject to ERISA and hence the DOL loan regulations don't apply. For example, a participant with a $10,000 balance might be able to borrow the whole $10,000 in a non-ERISA plan but probably will be restricted to only $5,000 in an ERISA plan. Link to comment Share on other sites More sharing options...
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