An inside income provider (IRS) Chief Counsel Advice memo issued to help counsel in another of the agency’s offices that are regional
The memo, dated August 30, provides two pictures to show how missed installments might be composed without penalty. One makes use of a later on, bigger re re payment therefore the other employs an alternative loan. Both circumstances happen inside the hypothetical plan’s stated loan cure period.
Two Examples Offered
Both examples are derived from the facts that: (1) the 401(k) plan in question allows plan loans and permits for a remedy duration; and (2) that on January 1, 2018, the participant obtains an idea loan that doesn’t go beyond the permitted restriction on such loans, just isn’t a mortgage, includes a lawfully enforceable central cash loans contract, and it is repayable in equal installments at the conclusion of every month for the contract, that will be amortized over 5 years.Read more →