Guest lindamichals Posted May 11, 2006 Posted May 11, 2006 I need some clarification regarding loans and safe harbor plans. Do I consider the participants account balance, including safe harbor account balances prior to age 59 1/2 in determining 50% OR do I not consider safe harbor. Thank you, Linda Michals
Archimage Posted May 11, 2006 Posted May 11, 2006 As long as your plan doc/loan policy allows, then yes.
ERISAnut Posted May 15, 2006 Posted May 15, 2006 Do not confuse a loan with a taxable distribution. When an account has withdrawal restrictions, a tax free loan is not considered a withdrawal. This authority is 72(p) which basically states that a tax free loan is not a distribution if the proper conditions are met (i.e. 50% of vested balance).
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