Randy Watson Posted April 13, 2007 Posted April 13, 2007 Loans from plans subject to QJSA require spousal consent. Spousal consent is not required if the $5,000 cash out applies. When applying that exception, do you use the total account balance or just the portion of the account used to secure the loan? For example, assume a participant has a $10,000 account balance (fully vested) and applies for a $3,000 loan. Is spousal consent needed?
Blinky the 3-eyed Fish Posted April 13, 2007 Posted April 13, 2007 Yes. The same rules apply as if the participant were taking a distribution from the plan. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
Randy Watson Posted April 13, 2007 Author Posted April 13, 2007 So you use the entire account balance ($10,000 in my example).
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