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401(k) Plan Fix-It Guide for Participant Loans That Do Not Comply with the Plan Document or Section 72(p)
Internal Revenue Service [IRS] Link to more items from this source
[Guidance Overview]
Feb. 7, 2019

Updated Feb. 6, 2019. "Plan sponsors should ensure that their plan document allows loans before allowing participants to borrow money from the plan. Some plan documents include a complete description of loan rules. Others make only a statement that the plan allows participant loans, subject to a separate written loan program. A participant loan must meet several rules under IRC Section 72(p) to prevent the law from treating it as a taxable distribution."

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