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Posted

A 401(k) plan had a participant with a participant loan. It turned out she made one extra payment on her loan and an additional $410.00 is in the plan. She was not making repayments through payroll deduction but by personal check.

This seems like it should be correctable through self-correction. If so, I would think the additional $410.00 plus earnings would be refundable to her. Does anyone disagree? Also I would think earnings should be based on actual plan earnings between the time of the additional payment and the refund. Anyone disagree?

Thanks.

Posted

Are these individual accounts? If so, I think you could/should use the individual return on the investment, instead of the plan as a whole.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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