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Does the Soldiers and Sailors Civil Relief Act require that the interest rate on a participant loan from a 401(k) plan be reduced to no more than 6 percent?

April 26, 2017ACT Civil Interest rate loan participant relief require Sailors soldiers

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Does the Soldiers and Sailors Civil Relief Act require that the interest rate on a participant loan from a 401(k) plan be reduced to no more than 6 percent?

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Yes. The Soldiers and Sailors Civil Relief Act requires creditors, including 401(k) plans, to drop interest rates to no more than 6 percent on debt owed by those entering military service for the period of such military service.