Guest JILL SZ Posted February 28, 2008 Posted February 28, 2008 COMPANY HAS CHANGED SERVICE PROVIDERS FOR THE 401K PLAN. THE NEW PROVIDER IS ADMORTIZING THE LOANS DIFFERENTLY THAN THE OLD PROVIDER RESULTING IN MORE PAYMENTS/INTEREST ON THE EXISTING LOANS EVEN THOUGH THE ADOPTION AGREEMENT STATES THAT THEY WILL "PRESERVE PROVISIONS OF LOANS OUTSTANDING PRIOR TO RESTATEMENT" CAN THE NEW PROVIDER LEGALLY DO THIS?
david rigby Posted February 28, 2008 Posted February 28, 2008 The provider is (should be) irrelevant to the amortization schedule. Before assuming the new provider is incorrect, check the terms of the loan, to make sure the prior schedule agreed with the terms of the loan document. BTW, please turn off your CapsLock key. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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