How do I repay the loan?

Loan payments should be made by check from your personal checking account (not the cash balance plan investment account) payable in the name of the cash balance plan.

Make sure to write “Participant Loan Payment” on the check memo line. If you are doing an automatic transfer, make sure it is clearly notated. As trustee of the plan, deposit the loan payment checks into the cash balance plan bank or investment account.

The trustee must track the loan payments. The loan amortization schedule and the retirement plan bank account statements serve this purpose.

Make sure you report to us any default under the payment terms and we will issue a 1099-R at the end of the year.