cpc0506 Posted January 14, 2013 Posted January 14, 2013 Client is looking to add loans to its plan. The loan fees will be paid by the participants, i.e., set up and annual loan maintenance. Investment House is telling us that the loans cannot be made available until a new 404a5 notice is provided and this notice must be given 30 days before the change. Is this correct? Any thoughts?
Bird Posted January 14, 2013 Posted January 14, 2013 The plan isn't 404a5 compliant without the 30 days. I think they'll process a loan if you tell them you understand and that they're not responsible. Ed Snyder
John Feldt ERPA CPC QPA Posted January 14, 2013 Posted January 14, 2013 How about having the loan fee charged directly to the participant for this first 30 days? After the 30 days, then any other future fees related to the loan could just be charged to accounts?
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