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Focus 05: Resolving Loan Errors Under EPCRS '14
Presentor: Stephen Forbes Recorded Date: 4/21/2014 Duration: 60 Min.


This program was recorded during a live presentation on April 21, 2014.

Focused Topic 05: Resolving Loan Errors Under EPCRS

Mondays with Derrin and Steve

Administering participant loans is one of the least rewarding and most challenging aspects of retirement plan practice. Many practitioners would just as soon eliminate loans from the plan. However, loans continue to be one of the more popular plan features.

The administrative challenges of loans cause many plan errors resulting in taxation and qualification issues. Unfortunately, the IRS knows this and makes loans one of their top audit issues. Accordingly, a practitioner must be able to identify the errors and understand the correction options. This web seminar provides you with a better understanding of how to administer and corect loans properly.

Topics include:

  • Loan offset vs. deemed distribution
  • Grace period
  • Failure to apply loan limits
  • Refinancing
  • Loan term failure
  • Reporting defaults
  • Failure withhold
  • Delinquent deposit of loan repayments

Prerequisites: There are no prerequisites and no advance preparation required for this program.

Level: Intermediate

Instructional Delivery Method
Group – Internet-Based

Speaker – Stephen W. Forbes, J.D., LL.M.
Author ofThe 5500 Filing Guide

Objectives: After the seminar, attendees should be able to:

  1. Distinguish between defaulted loans that are deemed distributions and those which are loan offsets
  2. Resolve a failure to apply loan terms correctly
  3. Determine how to report a defaulted loan on Forms 1099-R and 5500
  4. Report and correct delinquent deposits of loan repayments
  5. Account for loans after default
  6. Resolve a failure to withhold loan repayments
  7. Correct a failure to apply adjustment to the $50,000 limit
  8. Correct a loan refinancing failure

Hardware System Requirements:

  • Windows Vista, Windows 7, or Windows 8
  • Internet Explorer 8 or later, and set browser to allow pop-up windows.
  • High-speed Internet connection.
  • 1023 x 768 or higher display resolution.
  • Soundcard and Speakers.

Software Requirements:

Program related requests, questions, or concerns may be emailed to: