Notice 2020-23 Extends Solo 401k Participant Loan Payments

The Internal Revenue Service (IRS) extended certain participant loan payments for 401k plans including solo 401k plans when they issued Notice 2020-23 on April 10, 2020.

While not easily identifiable unless you take the time to actually read the Notice 2020-23, this notice contains language referencing Notice 2018-58 which extends the deadlines for time-sensitive actions resulting from a federally declared disaster (in this case COVID-19).

As as result of both notices (2018-58 and 2020-23), those solo 401k participants  with outstanding solo 401k participant loans can suspend making loan payments due during the period of April 1, 2020 to July 14, 2020 and make them up by July 15, 2020.  This extension is afforded even if you were not directly impacted by COVID-19.

While the Coronavirus, Aid, Relief and Economic Security (CARES) Act that was passed into law on March 27, 2020 also extends the solo 401k participant loan payment deadline and is more favorable in that solo 401k participant loan payments due between March 27, 2020 and December 31, 2020 can be suspended until January 2021 (or the first quarter of 2021 if your loan payments are due on a quarterly basis), you must meet one of the conditions outlined in the CARES Act in order to take advantage of delaying the solo 401k participant loan payments to January 2021 or the end of the first quarter of 2021.

 

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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