FIS Relius

Do you already know the basics of 401(k) plans, and want to move on to the nitty gritty? There are so many rules, that it is impossible even for a very experienced practitioner to remember them all. Each installment in this series will present a one-hour focused look at a single topic affecting 401(k) plans and provide the information practitioners need to know to be sure they are fully assisting the companies and participants they serve. You can brush up on a single topic, or view the whole set, either as a live seminar, where you can ask questions, or as an archived presentation on your own schedule. Our standard pricing has been discounted to make attendance to all sessions in this series more cost effective. The series will cover the following:

401(k) Plans: Beyond the Basics Web Series

• 401(k) BB 01: IRS and DOL Correction Programs:More than Alphabet Soup
• 401(k) BB 02: Plan Document Requirements and Deadlines
• 401(k) BB 03: Eligibility and Vesting Design Considerations
• 401(k) BB 04: HCEs and Compensation
• 401(k) BB 05: Coverage Testing Issues
• 401(k) BB 06: The Average Benefit Test
• 401(k) BB 07: Elective Deferral Options
• 401(k) BB 08: ADP Testing Techniques
• 401(k) BB 09: ACP Testing Techniques
• 401(k) BB 10: After-tax Contributions: The Other White Meat
• 401(k) BB 11: Safe Harbor 401(k) Plan Design
• 401(k) BB 12: Safe Harbor 401(k) Plan Operation
• 401(k) BB 13: Distribution Restrictions & Hardships
• 401(k) BB 14: Participant Loans: The Fine Print
• 401(k) BB 15: All About Roth

401(k) Beyond the Basics 14: Participant Loans: The Fine Print

Handling plan loans is one of the least enjoyable aspects of retirement plan practice. But it remains an important part. Many employees want to be able to borrow from their accounts, and that often includes the owners. Plan loans impact plans in many ways: prohibited transaction rules, deemed distribution rules, joint and survivor rules, plan asset rules, and more. There's a lot to keep track of just to let a participant have temporary access to his or her funds. Topics include:

• Avoiding Deemed Distributions
  • Maximum Loan Amount
  • Enforceable Agreement
  • Repayment Rules
    • 5 Year Limit
    • Level Amortization
    • Payment Suspension
  • Curing Defaults
  • Refinancing Loan
• Consequences of Deemed Distribution
  • Penalty Taxes
  • Loan Offsets
  • Reporting
  • Repayment
  • Phantom Interest
  • Limits on Future Borrowing
• Avoiding Prohibited Transactions
  • Reasonable Interest
  • Nondiscrimination Requirements
  • Reasonable Availability
  • Adequate Security
  • Plan Provisions or Policy
• Joint and Survivor Requirements

There are no prerequisites or other advanced preparation for this program. The instructor will assume attendees have a general familiarity with the qualified plan requirements, and a minimum of two years of experience in dealing with qualified plans.

Instructional Delivery Method: Group – Internet-Based

NASBA Field of Study: Taxes

Speaker: David Schultz, J.D.

Objectives: After the program, attendees should be able to:

• Describe the options available in designing and administering a participant loan program
• Correctly report and address administration of loan defaults and offsets
• Advise a client on avoiding prohibited transactions involving participant loans

How to participate

You will need a phone (speakerphone, for multiple participants sharing the Primary registrant’s authorized connection) and Internet Access. The graphics presentation and illustrations will be viewed via the Primary registrant’s Web connection, while the speaker audio portion will be via the Primary registrant’s telephone. Important Note: The user registrant must be logged in via the internet for CE purposes.

Select the "Fees" link on the right side menu of this page for more information about who is authorized to connect to the program, and for the cancellation/transfer policy.

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