💰Proposed Rule on Curing Missed Loan Payments by FRTIB
Curing Missed Loan Payments
Summary
The Federal Retirement Thrift Investment Board (FRTIB) proposes to update its regulations regarding the methods available to participants to cure missed loan payments. The proposed change will also clarify the number of missed payments which must be brought back into compliance by the last day of the quarter following the quarter in which the payment was missed to avoid triggering a deemed distribution.
Agencies
- Federal Retirement Thrift Investment Board
Business Impact
$$ - Med
The proposed rule updates the Federal Retirement Thrift Investment Board's regulations on curing missed loan payments, allowing participants to use recurring payroll deductions for missed payments. This change provides greater flexibility, potentially reducing the impact of missed payments on participant loans and, by extension, retirement savings.