jaxon1225
Jun 6 2006, 09:21 AM
When a participant passes away and has an outstanding loan balance in the plan, what should happen to the loan? Would it be defaulted and taxable to the estate?
vebaguru
Jun 7 2006, 02:10 PM
The outstanding loan can be repaid by the deceased participant's beneficiary or estate. If it is not, however, the fiduciary's duty to the remaining participants would require him/her to withhold the amount due from any distribution paid.
Bizitchie
Jun 7 2006, 02:16 PM
I believe if a loan is not repaid in this situation then it is taxable to the estate.
Kirk Maldonado
Jun 7 2006, 04:43 PM
Is there an Income in Respect of a Decedent issue here?
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please
click here.