loan
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Loan Leakage: Preventing Loan Defaults from Draining America’s 401(k) Accounts
- November 21, 2019
- Posted by: Jeff Atwell
- Category: Financial Plan, Resources
No CommentsWe’re continuing our discussion on loan leakage and looking at America’s $2 trillion retirement loan dilemma. Our resource explores different mechanisms to prevent loan leakage, illustrates the impact on individuals, and addresses the increased fiduciary risk associated with loan leakage.
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Fiduciary Loan Regulation
- September 26, 2019
- Posted by: Jeff Atwell
- Category: Financial Plan, Resources
Plan leakage can be the result of participants terminating with outstanding loan balances. This leads to an important question for plan fiduciaries. If a participant is going to be terminated involuntarily due to a reduction in workforce or poor job performance, and the participant applies for a loan, should the loan be granted? Based on the content of the article we’ve attached, the fiduciaries of the plan could create a fiduciary breach by granting the loan to the participant.
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TRG has been a key partner in the UBMD Family Medicine 401k plan for over 12 years, providing assistance with fiduciary and investment services. The TRG team has always provided us with excellent advice, guidance and customer service. Any one of them will make themselves available to you whenever needed. We are very thankful for their help and support!