Loan Refi's if Loan Program discontinued

[austin3515]

Plan does not allow for loans anymore (it used to). Can the plan allow for refinancings of existing loans?

[Belgarath]

Interesting question. IMHO, taking the conservative interpretation of the language in 1.72(p)-1, Q&A-20, it seems to me that a refinancing is treated as a new loan. If the plan says no new loans, then I think that includes refinancing an existing loan.

Off the cuff without any further thought or research, it seems to me that if the plan provides that the only new loans permitted are refinancings of existing loans, then I think perhaps you'd have to look at nondiscrimination testing.