An interior income provider (IRS) Chief Counsel Advice memo issued to help counsel in another of the agency’s regional workplaces prov
The memo, dated August 30, offers two pictures showing how missed installment payments might be comprised without penalty. One utilizes a later on, bigger re re re payment plus the other employs an alternative loan. Both situations happen inside the plan’s that is hypothetical loan remedy period.
Two Examples Provided
Both examples derive 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 agenda loan that doesn’t meet or exceed the permitted restriction on such loans, is certainly not a mortgage loan, features a legitimately enforceable contract, and it is repayable in equal installments at the conclusion of every month for the contract, that will be 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.