Ability to take out loans taken away.

Posted in the 401K Forum

401k_guy

Livonia, MI

#1 Aug 17, 2012
ok so i took out a loan from my 401K for 1000 dollars. that very week got my check note attached saying. 401k loans will no longer be approved signed president of my company. 2 weeks later letter with check loans are now re-instated signed president of company. I don't understand this at all. Seems odd.
Hello

Boynton Beach, FL

#3 Apr 5, 2013
The president found out that he couldn't just stop offering loans. While loans are not required to be offered by 401(k) plans them being allowed in the first place means it has to be written into the plan document so to take them away would require amending the plan.

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