metsfan026 Posted October 25, 2021 Posted October 25, 2021 General question regarding RMD. If a participant has an outstanding loan, is the outstanding balance of the loan included in the 12/31 balance for the calculation? In other words: (Investments + Outstanding Loans) / RMD Factor I believe that's the case, I just wanted to confirm. Thanks in advance!
Lou S. Posted October 25, 2021 Posted October 25, 2021 It's part of his balance right? Of course it's included in the calculation. Luke Bailey 1
CuseFan Posted October 25, 2021 Posted October 25, 2021 seconded w/o a doubt Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
BG5150 Posted October 25, 2021 Posted October 25, 2021 *thirded QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
metsfan026 Posted October 26, 2021 Author Posted October 26, 2021 21 hours ago, Lou S. said: It's part of his balance right? Of course it's included in the calculation. What about if the loan has been deemed in default, but the balance is still being shown as an asset of the Plan?
Bird Posted October 26, 2021 Posted October 26, 2021 2 hours ago, metsfan026 said: What about if the loan has been deemed in default, but the balance is still being shown as an asset of the Plan? Any loans with that status should be (have been) "distributed" (just an accounting entry/no reporting) when the participant was eligible to receive a distribution. It's hard to think of a reasonable scenario where that shouldn't have happened before RMDs were due. Lou S. 1 Ed Snyder
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