Suanne
May 11 2001, 12:06 PM
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?
b2kates
May 11 2001, 01:55 PM
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.