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Full Version: Can a plan's maximum loan limit be less than 50% of the vested account
BenefitsLink Message Boards > Retirement Plans > Distributions and Loans, Other than QDROs
Suanne
Can a plan's document limit the maximum loan to something less than 50% of the vested account balance, for example 20% of the vested account balance?
R. Butler
Yes.
b2kates
I agree that a Plan may limit the loans to less than 509% of the vested account balance. The 50% is a maximum permitted by statute, but a Plan is always permitted to be more restrictive--remember the Plan does not have to have loans at all.
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