PLAN LOANS
01.Core Concepts
• Permissible by any qualified plan • Usually only found with CODA type plans • Loan may not exceed: • The lesser of: $50,000 ($100,000 if qualified disaster area), or ½ of the participant’s vested account balance (100% if qualified disaster area) • Exception, when vested account balance is <$20,000, the maximum loan is limited to the lesser of: $10,000, or The vested account balance • The $50,000 limit is reduced by the highest outstanding loan balance within the previous twelve-month period. • The one-half vested account balance amount is reduced by any outstanding loan at the time of a new loan.