Wrong Interest Rate on Loan

[Guest dbvail]

While preparing the Accountant's Opinion the CPA discovered that the loan interest rate used for a couple of loans was incorrect (prime rate had changed, loan rate should have moved with it but did not). As loan procedures are made part of the document by reference, it seems that this may be a qualification issue. Maybe not?

As one loan has already been paid off, with $150 too much, and the other still out there, what are the remedies? Must (or should) the overpayment be returned? It seems as though a Participant has technically contributed after-tax dollars which are not allowed in the plan, and these should be fixed. But as always, what am I missing?