John A Posted March 6, 2001 Posted March 6, 2001 Can a plan sponsor make a loan to a participant that the participant then uses to pay off a loan from the plan, or is this a prohibited transaction?
Guest Benefits Maven Posted March 9, 2001 Posted March 9, 2001 Is the plan sponsor making the loan from the plan? - that would certainly be prohibited. If making a loan from assets outside a qualified plan, I do not believe it would be prohibited.
Erik Read Posted March 9, 2001 Posted March 9, 2001 If the loan from the sponsor is from the individual, and has nothing to do with the plan, and could be shown as a "business transaction" for the company books or the individuals accountant, then the plan isn't involved. __________________ Erik Read, APR CKC
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