An interior income provider (IRS) Chief Counsel Advice memo issued to aid counsel in another of the agency’s regional workplaces prov
The memo, dated August 30, provides two illustrations sjust howing how installment that is missed could be made without penalty. One utilizes a later on, bigger re payment therefore the other employs an alternative loan. Both circumstances happen in the hypothetical plan’s stated loan remedy period.
Two Examples Offered
Both examples derive from the reality that: (1) the k that is 401( plan in question allows plan loans and permits for a remedy period; and (2) that on January 1, 2018, the participant obtains an agenda loan that doesn’t surpass the permitted limitation on such loans, just isn’t a mortgage, includes a legitimately enforceable contract, and it is repayable in equal installments at the conclusion of every month for the contract, that is amortized over 5 years.