Tax Facts

4069 / What is the process for determining whether loans taken under a tax sheltered annuity are taxable income when the participant receives multiple loans?



Where a participant receives multiple loans, each such loan must separately satisfy IRC Section 72(p), taking into account the outstanding balance of each existing loan. Under the final loan regulations, there is no limit on the number of loans a participant is permitted to take out.1






1.  Treas. Reg. § 1.72(p)-1, A-20(a)(3).

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