Interest rates must be more than interesting – Make sure your plan loan interest rate is reasonable
Abstract: Plan loans are governed by many IRS and Department of Labor (DOL) rules and regulations. Even though they’re an optional plan feature, if you choose to offer plan loans to your participants, your plan document must comply with the current laws, including the interest rate charged on these loans. Some plan documents stipulate an interest rate, while others don’t. This short article discusses the rules pertaining to plan loan interest rates.