Tag Archives: Plan Loans

Documentation Hardship for Hardships (and Participant Loans, Too)

What is the IRS thinking about when it announces that plan sponsors, even those using a qualified TPA/recordkeeper, should maintain the records for hardship distributions and participant loans? 401(k) plans particularly (although this applies to other types of qualified plans […]

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Florida Stamp Tax

If your 401(k) plan maintains a participant loan program, you may discover that you have compliance concerns thanks to a relatively obscure Florida tax statue.  Under its revenue laws, Florida imposes a document tax on loan transactions that are made, […]

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Qualified Plan Loans – Repayment Upon Termination of Employment Can Be a Hardship

The situation involved in Private Letter Ruling 201407027 illustrates that a participant can be caught between a rock and hard place when a qualified plan loan must be repaid upon termination of employment. Administering qualified plan loan repayments following a […]

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Correcting 401(k) Plan Loans Under EPCRS

Participant loans from 401(k) plans must satisfy certain rules under section 72(p) of the Internal Revenue Code (the “Code”) to prevent the loan from being treated as a taxable distribution (sometimes called a “deemed distribution”).  The amount of the loan […]

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IRS Audit Trends & Issues

Continuing our series of posts reporting on the recent TE/GE meetings, today we focus on the audit trends and issues that the IRS officials in attendance identified.  In addition to providing insight on the IRS’s focus, the list serves as […]

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Are You Doing a Quarterly Loan Checkup?

With a down economy, many employers are seeing an increase in loan requests from retirement plan participants.  With an increase in loan requests comes an increase in loan administrative concerns.  In fact, IRS officials have informally stated that they are […]

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DoL Representative Sheds Light on Enforcement Priorities

A representative from the Atlanta Regional Office for the Department of Labor recently spoke at an Atlanta Bar Association luncheon and provided some insight into the Employee Benefits Security Administration’s enforcement priorities and some other interesting facts: With regard to […]

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Update: Is Prime + 1% a Reasonable Interest Rate for Qualified Plan Loans? Fiduciary Diligence is Necessary

As reported by BNA Pension and Benefits Daily on December 19, 2012, an Internal Revenue Service (“IRS”) official again confirmed in a December 18 webcast that the Prime rate + 1% may not be a reasonable interest rate under the […]

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Is Prime + 1% a Reasonable Interest Rate for Qualified Plan Loans?

In a phone forum held on September 12, 2011, Internal Revenue Service (“IRS”) officials were reported by BNA Pension and Benefits Daily in a September 13, 2011 article by Florence Olsen as indicating that the Prime rate + 1% may […]

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