MyPlanLoan, a BPAS Service, is a full-service loan administration solution that solves the various complexities of offering participant loans in qualified and certain non-qualified retirement plans. MyPlanLoan not only benefits participants, but recordkeepers and plan sponsors alike.
MyPlanLoan assumes all administrative functions for participant loans, including processing participant loan payments.
MyPlanLoan provides a valuable option for terminated participants, allowing them to continue to make payments on their outstanding retirement plan loan, helping to avoid the significant tax penalties associated with a loan default.
MyPlanLoan is available to active participants as well. Providing plan sponsors with the ability to set loan limits below 72(p), this prudent loan program gives plan sponsors a tool to help protect retirement savings by setting reasonable loan maximums to help prevent participants from borrowing more than they should. This not only serves to keep more assets in the plan, but also allows companies to take a paternalistic approach to loans, and thereby have an active role in protecting participants from spending their retirement savings before their golden years.