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Final Plan Loan Regulations Clarify Treatment of Refinancing, Other Issues
Deloitte & Touche Human Capital Advisory ServicesLink to more items from this source
Dec. 10, 2002
Excerpt: A participant that refinances a plan loan may encounter problems if the arrangement results in a replacement loan with a term ending later than 5 years from the original date of the loan it replaced (i.e., the latest permissible term of the replaced loan). In this case, both the replacement and the replaced loans will be treated as outstanding on the date of the transaction, meaning the arrangement may cause the participant to exceed the maximum loan limit.

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