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Posted

Example: I have an amortization schedule that call for $100 on the first of every month. (Participant gets paid on the first of every month)

If the money comes out of his paycheck for the 1st, but does not get deposited in the the trust until the 5th, does the loan have 5 days of extra accrued interest?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

Posted
Example: I have an amortization schedule that call for $100 on the first of every month. (Participant gets paid on the first of every month)

If the money comes out of his paycheck for the 1st, but does not get deposited in the the trust until the 5th, does the loan have 5 days of extra accrued interest?

No. Just look at the loan payments as plan assets as soon as they are withheld from the particpants' pay :)

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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