JKW Posted May 22, 2014 Posted May 22, 2014 In regards to a participant obtaining a loan for the purchase of a home, is an email or letter from the participant stating that the loan will be used for a home loan enough documentation. I do not see any IRS language that defines what the documentation has to be. Thanks.
Lou S. Posted May 22, 2014 Posted May 22, 2014 It depends on how cautious you wnat to be with documentation. Some plans will accept the participant's signed statement, other plans want a good faith closing estimate, and I've heard of other plans that will only pay a home loan proceeds to the escrow company.
K2retire Posted May 22, 2014 Posted May 22, 2014 It depends on how cautious you wnat to be with documentation. Some plans will accept the participant's signed statement, other plans want a good faith closing estimate, and I've heard of other plans that will only pay a home loan proceeds to the escrow company. How does that work with the anti-alienation rules?
BG5150 Posted May 22, 2014 Posted May 22, 2014 I was on a webcast wherein the presenter was talking about a plan that got audited (investigated) and got into trouble for allowing home loans (5+ years) without proper backup. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
JKW Posted May 22, 2014 Author Posted May 22, 2014 Did they happen to say what proper back up included?
BG5150 Posted May 23, 2014 Posted May 23, 2014 Some sort of agreement for buying a house. Nothing specific. A side note tot he discussion. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
mbozek Posted May 24, 2014 Posted May 24, 2014 I have always asked for a copy of the signed contract to purchase the home. mjb
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