Loan Limits in Daily Valued Plans

[Guest wolfman]

I am asking for recommendations for the problem in the daily valued plan of establishing the 50% of vested account value. In cases where the market declines, the amount of loan requested may be more than 50% of the vested account by the time the loan is processed. I have heard of several approaches including:

1. Set the maximum in the loan policy to a lower percentage such as 45%

2. Go by the value on the date the required signatures were obtained (in cases where loans require signatures as in a QJSA plan)

Where the loan requires advance approval or spousal consent, are there other options than the above?

Thank you,

[No Name]

How do you suppose this would be audited down the road? I'd print out a daily val report on signature date, grant the loan, and sleep all night. Even if the holdings were Worldcom and Enron.

Unless you have foresight on the market, who knows what will happen tomorrow?

[Kirk Maldonado]

Also, if you have foresight on the market, you are wasting your time being a benefits professional.