RPP2001 Posted October 1, 2014 Posted October 1, 2014 A plan allows only 1 loan outstanding at a time per participant and the minimum loan amount is $1,000. The plan allows refinances. A participant has $400 outstanding on their loan. If the participant wants to refinance their loan, but, the additional proceeds available due to their small account balance is only $700. Is this refinance permissible? I am not sure whether the 1,000 minimum amount should appy to only the additional proceeds amount ($700) or if it applies to what would be the new outstanding amount ($1,100 which is $400 + $700). Any help would be appreciated. Thank you.
QDROphile Posted October 1, 2014 Posted October 1, 2014 The $1000 minimum is a plan term, not a legal requirement. Whoever has the authority to interpret the plan will answer questions about the meaning of the terms. Refinancings can be quite tricky and are governed by rules that are not simply a matter of plan terms.
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