Oh so SIMPLE Posted July 24, 2013 Share Posted July 24, 2013 I've got a situation where a divorcing employee has ~$200k in 401k benefits. $40k of that is a loan to the employee, the other $160k is invested in mutual funds. Employee is going to receive all the equity in their home. So, QDRO awards ex-spouse all $160k mutual funds part of the 401k benefits. This leaves the employee with a loan of $40k and benefits of $40k. Does that render the loan improper under 72p since it exceeds 1/2 of the vested benefits (and exceeds $10k)? Link to comment Share on other sites More sharing options...
Belgarath Posted July 24, 2013 Share Posted July 24, 2013 Shouldn't be a problem. The 50% requirement only has to be met when the loan is first taken. Link to comment Share on other sites More sharing options...
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