How Can We Help?
< Back
You are here:
Print

Determining account value

Posted
Last Updated On
ByRaf

L1: Determining account valueHi,
I am planning to start a new SEPP plan under my pension account (403b), my date of birth is May 6, 1970.
I already have A loan under my pension and I pay a monthly installment to repay the loan. When determining the value of the account should I include or exclude the balance of the loan in determining the amount available to the sipp plan? Does having the loan effect in any way my participation in the SEPP plan?
Thanks
2016-06-16 21:58, By: Raf, IP: [71.114.79.47]

L2: Determining account valueI wouldn’t even think about a SEPP from a qualified plan with an outstanding loan unless you are dead sure that the loan payments will be made as scheduled. Any deemed distribution 1099R will likely bust your plan if that occurs. If you are still working for the firm that sponsors the 403b there could be no contributions to the plan for any reason or a SEPP plan would be busted. If you have left employment, then your loan will probably be due within a short time thereafter. If so, where are you going to get the funds to repay the loan?2016-06-21 04:27, By: Alan S, IP: [160.3.87.235]

Table of Contents