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Loan re-financing


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Guest jvandyke
Posted

I have a participant who has re-financed two loans that he has in the plan. The maximum number of loans allowed is 2. He is now asking that we re-finance one of his loans again. Is this possible? Should we have even re-financed the second loan? Thanks.....

Guest vqualplan
Posted

Is there any limits to the number of times a loan can be refinanced? Any time restrictions?

Posted

See Treas. Reg section 1.72(p)-1 Q&A 20. While there is no limit on the number of times a loan can be refinanced, refinancing is subject to various limitations that will have the effect of limiting the number of refinancings. The complexity of the rules is a good reason for the plan terms or procedures to disallow or substantially restrict refinancing.

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