This Plan Loan Program for a 401(k) plan establishes rules under which participants may borrow money from their retirement savings before they terminate employment or are otherwise eligible for a plan distribution. This template includes drafting notes and optional and alternate clauses. Written loan programs must set forth application procedures and other material loan terms to comply with qualified plan rules. This template is designed as a stand-alone document that should be incorporated into the plan by reference, instead of appearing in the plan document itself. See 29 C.F.R. § 2550.408b-1(d)(1). Both the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) impose requirements on plan loan programs (also known as participant loan programs). The tax requirements for participant loans to avoid treatment as an impermissible distribution are found at I.R.C. § 72(p) and Treas. Reg. § 1.72(p)-1. Administrative and other requirements for participant loans not to ...