Rule of 78 for 401(k) loans

[Guest David_R]

Is the amortization method of "rule of 78" still a valid option for 401(k) loans?

Thanks

[Guest Phil L.]

The loan regulations don't provide specific blessings with respect to how the loans are amortized. Rather, they require plan loans to satisfy the commercially reasonable standard. If a participant could get a loan at a local lending institution using the Rule of 78 amortization method (which is somewhat rare I believe), it would likely be OK for the plan to use that same amortization method.