401k Loans and reamortization

unknown

For those that manage 401k loans through payroll deductions.  How do you handle situations where an employee leaves with an outstanding loan and then returns?

 

Thank You

unknown

We periodically review the current loan deductions on PR14 or PR15 to see if anyone has termed. If they have termed, we remove the remaining balance so that it doesn't start taking loan deductions if they are rehired. Haven't found a way to automate that but reviewing once or twice a year allows us to catch and correct those.



Our 401k financial institution handles the remaining balance on their end for someone who terms. They do not want us resuming any sort of loan deduction for a rehire.



Hope this helps!