Loan Correction

[Medusa]

One of our small plan clients took out a loan for himself and informed us after the fact. There was and is no documentation (the plan does permit loans).

Does anyone have any thoughts about what is the best way to correct this? The payments are not yet delinquent.

Med :angry:

[JanetM]

Amend the plan to permit loans.

[Medusa]

It already does permit loans. That isn't the problem.

[JanetM]

Sorry, misread the OP. There is not documentation of the loan. No promissory note or amortization schedule.

Make the client provide one ASAP. How can you say the payments are not late if there is not promissory note that would indicate payment schedule.

[Medusa]

You are right, Janet, I think that's about all we can do. When I said the payments aren't late, I mean they're not "statutorily" late (not past the cure period). Thank you again for your assistance.