Computation of Maximum Loan Amount in the case of Multiple Loans

After issuing guidance earlier this year, the IRS has issued superseding guidance to agents on calculating the maximum loan amount in the event of multiple loans.

Document Excerpt

This memorandum supersedes interim guidance TE/GE-04-0417-0016 entitled Computation of Maximum Loan Amount under IRC § 72(p)(2)(A), issued April 20, 2017.

This memorandum directs EP Examinations staff to determine, as set forth below, the amount available for a loan where the participant has received multiple loans during the past year from a qualified plan, under § 72(p)(2)(A) of the Internal Revenue Code (IRC).

Link

https://www.irs.gov/pub/foia/ig/spder/tege-04-0717-0020.pdf

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