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401(k) Loan Rate


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Posted

Is there a firm DOL rule for the rate charged to a 401(k) plan participant when taking out a loan? I've heard the rule of thumb being 'Prime plus one or two points', but haven't seen anything to support it. We have just set an arbitary rate of 'Prime plus .5% up to a max of 8.5%', and I want to be sure we're in compliance. Thank you.

Posted

Thank you WDIK. I didn't see that topic when I scrolled thru.

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