Jump to content

Loan Repayments - Balloon


Guest Richele

Recommended Posts

Guest Richele
Posted

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.

Posted

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.

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

Terms of Use