jaxon1225 Posted June 6, 2006 Posted June 6, 2006 When a participant passes away and has an outstanding loan balance in the plan, what should happen to the loan? Would it be defaulted and taxable to the estate?
Ron Snyder Posted June 7, 2006 Posted June 7, 2006 The outstanding loan can be repaid by the deceased participant's beneficiary or estate. If it is not, however, the fiduciary's duty to the remaining participants would require him/her to withhold the amount due from any distribution paid.
Guest Bizitchie Posted June 7, 2006 Posted June 7, 2006 I believe if a loan is not repaid in this situation then it is taxable to the estate.
Kirk Maldonado Posted June 7, 2006 Posted June 7, 2006 Is there an Income in Respect of a Decedent issue here? Kirk Maldonado
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