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Retirement Planning
Chapter 11: Pension Plan Distributions/EXCESS PLAN LOANS: EXAMPLE
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 11: Pension Plan Distributions

EXCESS PLAN LOANS: EXAMPLE

01.Core Concepts

Adam has a vested accrued benefit of $200,000 and receives $70,000 to be repaid in level quarterly installments over five years. Adam has a deemed distribution of $20,000 (the excess of $70,000 over $50,000) at the time of the loan because the loan exceeds the $50,000 maximum permissible loan limit. The remaining $50,000 loan is not a deemed distribution.