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Posted

A participant died and had a valid loan outstanding at the time of his death. Surviving spouse wants to continue to make loan repayments on loan. Loan docs. and promissory note silent on issue. Is this permissible??

Posted

Are you sure that the plan does not provide for acceleration upon termination of employment or termination of payroll deductions? Nothing prevents the loan from continuing, but it is bad planning to have this sneak up on you. The situation raises many questions and implications about loan administration gnerally.

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