Nova 401(k) Associates
Retirement Plan Solutions, Inc.
Defined Contributions Consultant
Plan Design Consultants, Inc.
Healthcare Actuarial Consultant
Retirement Plan Sales Consultant
IUOE Local No. 478 Employee Benefit Funds
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|Loan default correction|
BenefitsLink Message Boards
May 11, 2021
"Long story short - participant loan apparently defaulted in 2018. Started making payments again in 2019, but should have been a deemed distribution. Too late to correct under SCP, but can be corrected under VCP, as per RP 2019-19, Section 6, .07(3)(d). Here's my question - the person involved is the company owner. Has anyone submitted under VCP in such a situation, and was there any problem with the IRS not approving it because it was the owner/fiduciary who defaulted?"
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