An interior income Service (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, offers two pictures sexactly howing how installment that is missed can be made without penalty. One utilizes titlemax a later on, bigger payment and also the other employs a replacement loan. Both circumstances happen inside the hypothetical plan’s stated loan remedy duration.
Two Examples Provided
Both examples are derived from the reality that: (1) the k that is 401( plan at issue permits plan loans and permits for a remedy duration; and (2) that on January 1, 2018, the participant obtains a strategy loan that will not go beyond the permitted limitation on such loans, is certainly not a mortgage, includes a lawfully enforceable contract, and it is repayable in equal installments at the conclusion of every month associated with the contract, that is amortized over 5 years.
The plan’s cure period lets a participant make up a missed installment payment by the last day of the calendar quarter after the calendar quarter in which the installment was due in this case.Continue reading