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Limiting loans and non ERISA status


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Is it acceptable for a tax exempt employer with a frozen 403b plan with multiple prior vendors to limit loans and hardships to only a few vendors, so in essence turn off loans and hardships from some vendors, esp in order to save on cost and prevent compliance problems?

It appears FAB 2010-01 does allow a sponsor to do so and still maintain non ERISA status.

Any thoughts would be very welcome!

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