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[Guidance Overview]

Employers and plan administrators will be better able to administer plan loans and meet the prohibited transaction exemption, since the IRS has given them a clearer picture of what constitutes a 'reasonable rate of interest.' ... [W]hile the IRS did not address which specific interest rate(s) it considers ideal, it did provide methods on the best way to calculate a reasonable interest rate for a plan, as well as three examples illustrating them.
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