Guest Richele Posted February 24, 1999 Posted February 24, 1999 Can a loan from a 401(k) Plan be repaid under a balloon type repayment? Participant pays interest monthly, then at the end of the loan term they pay off the principle.
Kathy Posted February 24, 1999 Posted February 24, 1999 IRC section 72(p) requires level amortization of the loan with payments of both principal and interest at least quarterly, otherwise the loan is treated as a distribution.
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