We are being asked to take over as trustee on a nonqualified deferred comp. plan that allows loans and currently has loans outstanding. I have never seen a NQDC plan with a loan provision, but cannot find where they are specifically excluded. Does anyone know of codes where loans are allowed or dis-allowed?

Becarefull with the economic benefit doctrine and constructive receipt, especially if the purpose of the plan is to lower the tax liability of the participant. I personnally don't think loan provisions belong in a nonqualified plan they can cause way to many problems.