Plan Loans Now Exempt from Truth in Lending Act

Effective July 1, the Federal Reserve amended Regulation Z to exempt most plan loans from the reporting and disclosure requirements found in the Truth in Lending Act. Going forward, plans will no longer be required to report and disclose loan details as presently obligated by this law, provided that the loans are made in compliance with Section 72 of the Internal Revenue Code.  The exemption covers employee benefit plans, whether or not they are subject to ERISA.

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