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Transamerica > Loans Review > Flashcards

Loans Review Flashcards

1
Q

In general , what is the MAXIMUM loan amount the IRS permits a PPT to take/have outstanding across all their plans ?

A

Max allowed across all plans is 50k
The max amount a PPT can take is THE LESSER OF : 50% of the sum of the vested account balance minus outstanding principle , or 50k reduced by highest outstanding loan balance in the preceding 12 months

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2
Q

what is the max time that can be used to pay back a personal loan ?

A

5 years

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3
Q

What is the max time that can be used to pay back a home loan ?

A

Differs by plan. Check System. The IRS max is 30 years.

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4
Q

What are the two types of personal loans a plan can choose from ?

A

Any reason , safe harbor hardship

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5
Q

How to look up number of loans in P3

A

Transactions> Loans > Plan loan provisions

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6
Q

Where would you find the interest rate a PPT will pay on a loan?

A

Transactions> Loans> Plan loan provisions based on loan type.

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7
Q

Where in P3/CTI can you see how does this PPT pay back a loan ?

A
  1. Transactions> Loans> Plan loan provisions.
    2.Transaction>Loans>Loan Modeling.
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8
Q

Where can you find the duration for a home loan ? Personal Loan?

A

Transactions> Loans> Plan loan provisions Based on loan type.

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9
Q

What approvals are needed for a personal loan ?

A

Spousal Consent, vesting, Marital Status and other needs to be approved by TRS
Transactions> Loans> Authorization and Approval

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10
Q

Where would you go to find how much a PPT has available for a loan that day?

A

Transactions> loans > loan Modeling

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11
Q

where can you find the highest outstanding loan balance in the last 12 months?

A

Transactions> loans > loan Modeling

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12
Q

How can you tell if a plan allows PPT to borrow from all sources ?

A

Transactions >Loans> Plan Source and loan provisions> Loan Source and fund provisions link Number ( Unclaimed benefits, Qualified ER Non-Elective)

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13
Q

How can you tell if a PPT can apply for a loan on the ppt website

A

Transactions> loans/Authorization and Approval

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14
Q

Where can you find the loan maintenance fee ?

A

Transaction >loans> Plan loan provisions

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15
Q

Where would you go to find if a PPT has any unprocessed Transactions?

A

Transaction> loans > participant loan activity > other pending transaction

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16
Q

What must a PPT supply for a home loan ?

A

Supporting documentation showing purchase of primary residence, amount, and closing date with buyer and seller signature

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17
Q

What do the following mean on the loans page of P3/CTI?
Model Only:
Model and Initiate:
Not allowed

A

Model Only: Go over loan provisions, model the loan, and send a loan form
Model and Initiate: Go over loan provisions, model the loan, and initiate the loan
Not allowed: Go over loan provisions, and send a form

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18
Q

What is the only way an ACH loan can be initiated?

A

The plan allows for ACH - this must be done on the ppt website by the ppt

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19
Q

What are two plan repayment options for loans?

A

Coupon or payroll deduction

20
Q

What is the rule when a PPT wants to make payments on multiple coupon loans?

A

Separate check for each coupon, loan number on each check

21
Q

True or False? A ppt can pay a loan off at anytime (the repayment method does not matter)

A

True

22
Q

How long is the loan payoff quote good for?

A

10 calendar days

23
Q

True or false? TRS encourages ppt to send a personal check for a loan payoff.

A

False- We do not accept personal checks

24
Q

What else should the ppt send us besides the funds when sending a loan payoff?

A

Loan payoff instructions

25
Q

How long does it take for the loan payoff to post to their account?

A

4 business days from the date of receipt, 2-3 business days if paid online

26
Q

What must they include on their loan payoff check to make sure it’s applied to their account properly?

A

Loan number

27
Q

What is the longest repayment frequency for loan repayments?

A

Quarterly (Knowledge DC loan repayments and payoff overview)

28
Q

What is a takeover loan? How is it represented in the system?

A

A loan that was initiated at another carrier prior to the plan moving to TRS. Red check mark on loan history.

29
Q

How can participants obtain loan payoff instructions?

A

CC can fax or email, or participant can print from website, not mail.

30
Q

How will an overpayment of a loan payoff be applied if:
a) the payment comes from ER
b) the payment comes from the PPT

A

a) If payment comes from ER, It would be applied to any other outstanding loans. If there aren’t any, it would be refunded to the PPT
b) If payment comes from PPT, It would be refunded to the PPT regardless if the PPT has another outstanding loan

31
Q

What is the rule regarding defaulted coupon loans?

A

If a PPT ever defaults on a coupon loan, they will not be entitled to future coupon loans unless they have paid off the defaulted coupon loan OR the plan changes to payroll deduction loans.

32
Q

A defaulted loan would be a ______ event for the PPT and they would receive a 1099R at tax time.

A

taxable

33
Q

True or False? A PPT will also receive a 1099R when a loan is issued to them?

A

False

34
Q

True or False? An offset loan will always show as an outstanding loan on a PPT’s account

A

False

35
Q

True or False? A deemed loan will always show as an outstanding loan on a PPT’s account?

A

True

36
Q

True or False? A deemed loan will reduce the amount available for future loans.

A

True

37
Q

True or False? If the plan allows for more than one loan, and a PPT has defaulted on a payroll loan, they will be able to take another loan if they have the funds available.

A

True because it is payroll deduction

38
Q

True or False? If the plan allows for more than one loan, and the PPT has defaulted on a coupon loan, they will be able to take out anot/her loan if they have the funds available?

A

False unless the plan allows payroll deduction repayments and the plan has more than one loan available, or the PPT has paid their defaulted loan off in full.

39
Q

If a PPT has defaulted on a payroll or coupon loan that is preventing them from taking a new loan, what could they do that would allow them to take a loan again?

A

Pay off the defaulted loan in full.

40
Q

What is the tax implication of a defaulted loan?

A

Outstanding loan balance becomes taxable to the PPT in the year it defaulted. They may have to pay a 10% penalty if under the age of 59 1/2.

41
Q

What are the two implications of a deemed loan on a PPT’s account?

A
  1. Reduces the amount available for future loans
  2. Reduces number of loans available
42
Q

When will a loan default?

A

The end of the quarter after the quarter in which the payment is due. (IRS period) The actual date in our system will be the 21st of the month following the end of the quarter, but we do not quote that date.

43
Q

How do you find the loan issue date on a loan?

A

Transactions -> Loans/ history

44
Q

Where in P3/ CTI can you view or order an additional amortization schedule for the PPT for the loan?

A

Transactions -> Loans -> History -> Request duplicate forms

45
Q

What would you tell the participant if they wanted to pay off their loan by mailing in a payment?

A

Payoff amount, amount good for 10 calendar days, see if can do on PPT website, bill pay, money order, or certified check. Where to send payment, takes up to 4 business days once check is received by the bank to be posted to the account, loan number on payment, include loan pay off instructions.

Transamerica (16 decks)

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