Proof for restricted loans???

[heygents]

We have a plan that allows loans but they are restricted to the usual items: Medical bills, tuition, purchase or maintenance of a home.

Should the plan sponsor have written proof about a need (i.e. estimate, etc.) before approving the loan or is the signed statement of the participant good enough?

Thanks

[masteff]

Do you mean loan or do you mean hardship? If you truly mean loan, then it's a plan restriction rather than a legal one, so I'd think that's an administrative decision for the plan sponsor.