Qualified Retirement Plan Loans Toolkit

Resources to help with compliance under the Employee Retirement Income Security Act of 1974 (ERISA) and Section 72(p) of the Internal Revenue Code (IRC) for loans to participants and beneficiaries from qualified retirement plans.

Practical Law Employee Benefits & Executive Compensation

Employee benefit plans ( www.practicallaw.com/6-502-2678) that are qualified defined contribution plans ( www.practicallaw.com/2-502-2755) , such as profit-sharing, money purchase, 401(k), 403(b) and 457(b) plans, are permitted, but not required, to offer loans to plan participants. Plan loans must comply with several sets of rules, otherwise the loan may be taxable to the plan participant:

Plan sponsors ( www.practicallaw.com/8-501-5243) must follow the requirements of ERISA and the Code to ensure that loans are properly structured. They must also take into account the loan provisions in the plan document and the loan policy, if any.

The Qualified Retirement Plan Loans Toolkit provides several continuously maintained resources designed to help plan sponsors comply with these rules.

 

Practice Notes

 

Standard Documents

 

Checklists

 

Legal Updates

 
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