Loans, Employee Benefits, 401k

The whole problem with loans

Ary Rosenbaum - The Rosenbaum Law Firm P.C. on 6/12/2025

When I draft a new 401(k) plan for a client, one of the first provisions I’ll recommend—including with some reluctance—is a loan feature. Not because I enjoy dealing with it. On the contrary, it’s an administrative pain. But...more

Anatomy of an ESOP

Husch Blackwell LLP on 8/15/2023

ESOPs can pay fair market value for the stock: Stock purchased by an ESOP must be appraised by an independent third party expert working with a trustee for the ESOP who must also be independent from the seller. The ESOP is...more

2017 Tax Law Change Provides Relief to Workers with 401(K) Plan Loans Who Lose Their Jobs

Blank Rome LLP on 1/7/2019

Increasingly, 401(k) plans have become the primary retirement savings vehicle for workers in U.S. private industry, and according to the Investment Company Institute, at the end of 2015, 87 percent of 401(k) plan participants...more

IRS posts six more “issue snapshots” for retirement plans

Eversheds Sutherland (US) LLP on 5/30/2018

Since 2016, the Internal Revenue Service Tax Exempt and Government Entities Division (TE/GE) has followed a practice of posting “issue snapshots” – technical summaries of tax issues provided for reference purposes – from time...more

Common But Costly Mistakes in 401(k) Plan Loans

Dickinson Wright on 5/14/2018

Many 401(k) plans allow participants to borrow amounts from their vested 401(k) plan accounts and repay such amounts, typically through payroll deductions, back to their own accounts. Plan loans must comply with IRS rules...more

Tax Reform's Impact on 401(k) Plan Loan Offset Treatment - Actions for Plan Administrators and Human Resources Benefits Managers

Holland & Knight LLP on 2/22/2018

• The recent Tax Cuts and Jobs Act of 2017 (the Act), enacted on Dec. 22, 2017, contains a few rules that will impact benefit administrators. • This client alert focuses on changes made to the tax treatment of plan loan...more

Retirement Plan and Leave Donation Programs During States of Emergencies

Carlton Fields on 9/14/2017

This article should interest employers offering retirement plan benefits or leave donation programs to employees affected by Hurricanes Harvey and Irma, in particular, and in various states of emergencies, in general. It...more

Internal Revenue Service Provides Helpful Relief to Hurricane Victims

Pillsbury Winthrop Shaw Pittman LLP on 9/12/2017

Announcement 2017-11 (Announcement) provides that a tax-qualified employer retirement plan may treat a distribution to a current or former employee covered by the Announcement as on account of hardship or an unforeseeable...more

Hurricane Harvey Relief for Employees

Bracewell LLP on 9/8/2017

Following Hurricane Harvey and its resulting destruction, many employees are in need of financial assistance and/or early access to retirement funds. We will highlight how employers can make direct financial assistance...more

IRS announces special relief to help victims of Hurricane Harvey

McAfee & Taft on 9/7/2017

Last week the IRS announced that 401(k) plans and certain similar employer-sponsored retirement plans can make loans and hardship distributions to help victims of Hurricane Harvey....more

IRS Provides for Expedited Loans and Hardship Distributions from Retirement Plans

Jackson Walker on 9/6/2017

The IRS announced last week that it will allow victims of Hurricane Harvey and their families to more easily access assets held in employer-sponsored retirement plans. Specifically, the IRS will allow certain retirement plans...more

IRS Eases Rules for Plan Loans and Hardship Distributions After Hurricane Harvey

Ballard Spahr LLP on 9/1/2017

The IRS has released Announcement 2017-11 to provide relief to taxpayers from requirements for loans and hardship distributions for participants of qualified retirement plans who have been adversely affected by Hurricane...more

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