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Loan repayments from Severance pay


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Guest Lisak
Posted

Can a former participant who is receiving severance pay continue to make loan payments through payroll deduction?

Guest Lisak
Posted
Is there anything in the loan documents that says they can't or that the loan is immediately due in full upon termination?

No there isn't.

Posted

If nothing specifically prohibits continued loan payments via coupon after termination or requires immediate payoff then you have the flexibility to allow. Tricky part is making sure EVERYONE is treated exactly the same. What ever you decide to, incorporate the details in the loan policy.

JanetM CPA, MBA

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