An inside income provider (IRS) Chief Counsel Advice memo issued to aid counsel in just one of the agency’s offices that are regional
The memo, dated August 30, provides two pictures showing how missed payments could be composed without penalty. One utilizes a later, larger payment while the other employs an alternative loan. Both circumstances happen inside the plan’s that is hypothetical loan remedy duration.
Two Examples Provided
Both examples are derived from the reality that: (1) the k that is 401( plan at issue allows plan loans and permits for a remedy duration; and (2) that on January 1, 2018, the participant obtains an idea loan that will not go beyond the permitted restriction on such loans, just isn’t a mortgage, has a legitimately enforceable contract, and it is repayable in equal installments by the end of every month of this contract, that will be amortized over 5 years. Continue reading →