jane123 Posted July 7, 2004 Share Posted July 7, 2004 403(b) custodian document defines a “participant” as someone who is currently employed by the employer and says that a “participant” may take a loan from the 403(b). Does this exclude former employees from taking a loan from the 403(b)? I know that some 403(b)s allow former employees to take loans . Thanks in advance for your help. Link to comment Share on other sites More sharing options...
mbozek Posted July 12, 2004 Share Posted July 12, 2004 Insurance companies permit former employees to take out loans because the annuity is required to offer a loan under state insurance law. The loan is paid directly to the insurer. Custodian accounts are not subject to state insurance laws. If the plan says that only currently employed persons are particpants for loan purposes then loans are not available to former employees. mjb Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now