Guest lskin Posted October 3, 2005 Posted October 3, 2005 When a person takes a loan from their 401k does any of the interest they pay go to the plan provider or will that interest always be the participant's?
Alf Posted October 3, 2005 Posted October 3, 2005 There is usually an initial set-up processing fee and on on-going admin. maint. fee, but the actual ammortized repayments go to the paticipant's account.
stephen Posted October 3, 2005 Posted October 3, 2005 Not necessarily. The plan document could be written so that the loans are an investment of the trust. In this scenario the interest is actually spread out amongst the participants. Note, these are pooled accounts which are not very common nowadays.
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