BackPublications

Employee Benefits Update - April 2009
New Rules Amend Truth in Lending Act to Exclude Plan Loans

04/08/2009

On December 18, 2008, the Federal Reserve Board (the "Board") approved final rules amending Regulation Z, which implements the Truth in Lending Act ("TILA"). The Board amended Regulation Z to exempt plan loans taken from employer-sponsored retirement plans qualified under section 401(a) of the Internal Revenue Code (the "Code"), tax-sheltered annuities under section 403(b) of the Code, or government-sponsored deferred compensation arrangements under section 457(b) of the Code, from the TILA requirements. However, the exemption only applies if the loan proceeds are comprised of fully-vested funds from the participant's account and are made in compliance with the Code. The final rules are effective July 1, 2010.

Download the File