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are you computing participant 401(k) loan amounts correctly?

are you computing participant 401(k) loan amounts correctly? Article News With Simple Text and Web Resource Link. For View Full Content Click on Source Link on Then Bottom Of News.



are you computing participant 401(k) loan amounts correctly?

in late april 2017, the irs issued a memorandum for employee plans (ep) examinations employees providing two alternatives for computing the maximum 401(k) participant loan amount when the participant has prior loans.the irs has established rules that allow a 401(k) plan participant to take no more than 50 percent of his or her vested balance up to a maximum of $50,000 in a rolling 12- month period. but before this memorandum, the law was not clear concerning how to compute the maximum loan amount when a participant has taken a previous loan during the year.as described in the new guidance, the maximum participant loan amount is the lesser of:50 percent of the participant's vested account b...