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What Is a “Sneaky” Plan Loan?

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What Is a “Sneaky” Plan Loan?

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Watch out for participants who attempt to make a loan or withdrawal just before the submission of a QDRO in order to reduce the alternate payee’s 50 percent share. Language in the QDRO should provide that the alternate payee’s share of the pension is to be calculated without regard to any loans made by the participant before the date of divorce.

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