Loans before level amortization required?

[Guest BXO]

Is it possible to have a loan in a qualified plan that pre-dates the requirement for level amortization? Say, an interest-only home loan? If so, what year did that requirement come into being?

Thanks.

[JanetM]

Final loan regs - 72(p) - were issued 7/31/2000 and applicable to all loans made on or after 1/01/2002.

[Guest BXO]

Level amortization has been mandatory for only the last 4 years?

[Belgarath]

However, I believe the level amortization requirement has been around for a lot longer than that. I have an impression that this was a requirement of TRA '86, but I certainly don't trust my memory on this.

[JanetM]

As to the Interest only part, I would avoid that one at all costs. Some fiduciary somewhere will be on the hook for allowing an investment that is not in the best interest of the plan participant. Remember the focus is on the Plan being a vehicle for saving, not buying a house.

[rcline46]

youngsters! September, 1983.