Plan Loan Rules for Qualified Retirement Plans

Summary

Use this practice note to understand how to design and administer a compliant plan loan feature in a qualified retirement plan. The practice note describes plan- and participant-level issues associated with plan loans as regulated by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). The practice note also addresses correction procedures for plan loan failures available under the Internal Revenue Service (IRS) Employee Plans Compliance Resolution System (EPCRS) and the Department of Labor's (DOL) Voluntary Fiduciary Correction Program (VFCP).