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Qualified Plan Loans

2019 – 04/24 In an Information Letter, the IRS advised that, while the U.S. tax code imposes certain requirements on qualified employer plans that offer loans to participants, such plans don’t have to offer loans at all. And even if they do, they may restrict the loans to certain situations, such as “hardships.” The IRS can’t force a plan to offer loans or stop a plan from imposing certain restrictions on loans. The IRS letter was in response to a taxpayer’s question concerning obtaining a loan from a 401(k) plan. Read Information Letter 2019-0004: http://bit.ly/2L0WPZH

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