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This problem snapshot will concentrate on the proposed regulations impacting the consent that is spousal under 417(a)(4) and if the 180-day permission duration relates to spousal consent to utilize a participant’s accrued benefits as protection for loans.
IRC Part and Treas. Legislation
IRC Section 417(a)(4) and Treas. Reg. Section 1.401(a)-20, A-24(a)(1)
Resources (Court Circumstances, Chief Counsel Guidance, Income Rulings, Internal Resources)
73 F.R. 59575-59579, 2008-45 IRB 1131
Section 417(a)(4) requires that qualified plans with an experienced joint and annuity that is survivor“QJSA”) receive the consent of a participant’s partner ahead of the participant’s utilization of plan assets as safety for the loan. Particularly, Section 417(a)(4) states that for plan participants at the mercy of Section 401(a)(11), plans shall offer that no part of the participant’s accrued advantage can be utilized as protection for a financial loan unless the partner associated with the participant consents on paper to such usage during the 90-day duration closing from the date upon which the mortgage is usually to be so guaranteed.