401(k) loan doc

[Guest andrew@falesandco.com]

I am a CPA and have a client that needs a loan doc to borrow money from his solo 401(k) plan. The third party adminstrator does not have a loan doc to provide my client, so in order to document the loan in writing, we need a loan doc. Any attorneys out there ready and willing to provide a plain vinilla loan doc that complies with Sec. 72(p)(2)? The terms of the $35,000 loan include a 60 month payback at 6% per year with payments made monthly. We need to do this ASAP.

[Mike Preston]

You are kidding, right? You say the client has a TPA that doesn't have or can't provide loan docs? Unbelievable.

You should be able to find a firm or two just by using google that does nothing but loans.

[Guest andrew@falesandco.com]

That is what I am told. I did not believe it either.

[rcline46]

I just learned of a bundled, no fee Fidelity Profit Sharing Keogh Plan, and they will not permit loans in the document. This person will now become a client of ours.

[masteff]

Services like CCH and RIA offer model loan agreements as part of larger packages. Thompson Forms appears to allow you to purchase just specific forms (fairly nominal price). http://forms.thompson.com/hrportal/search....cat&catid=1 (if you click to view details on a form, you can then click to view a sample and see if it's what you're looking for)

(I'm guessing what you mean, since you specify terms for the loan, is a model agreement, versus actual document text. If I'm wrong in that assumption, sorry.)

[Kimberly S]

Are you sure that the TPA didn't mean that this plan doesn't allow loans? That would be a valid reason for them to decline to provide the paperwork.