How much of the plan can be "debt"?

[Leopurrd]

I've read everywhere (including right down to the code) that the plan can have "qualifying employer real property" in the plan. The IRS website even mentions that this can be mortgaged by the plan (I realize that you have to watch for a PT).

However, what I cannot find are specifics about mortgages in a qualified plan- how much can be mortgaged, specifics of payments, etc.

Can anyone point me in the right direction? I'm looking for specific citations, etc. Also, if anyone knows of any examples it would really help!

Vicki

[TCWalker]

I think you'll find that guidance under the issue of "diversity".

[Guest TGeer]

Unless the real etstae's owner is a disqualified person. Then you have to look at ERISA 407 and IRC 4975 in detail.

[QDROphile]

As long as we are being vague, don't forget prudence.

[WDIK]

Can we add vaguely vitriolic to our types of posts?

[Kirk Maldonado]

TCWalker:

Don't you mean "diversification" not "diversity?"

Or are you suggesting that the investments should be politically correct?

[Locust]

The way I'm reading your post, the Plan is considering purchasing qualifying real property subject to a mortgage? This would be incredibly complex and I think only the largest plans in the world would qualify - look at the definition of "qualifying real property" (this is the 7-11 exemption), and the mortgage raises issues too.