Loans within limits) can be taken by all employees except those that are:

Question

Quizplus · Accepted Answer

Owner employees who are sole proprietors, partners who own more than 10 percent, and shareholders of S corporations who own more than 10 percent are all considered key employees and are restricted from taking loans within limits from their employer's retirement plan. This is to prevent them from using the plan for their own benefit and potentially violating tax laws.

Loans Within Limits) Can Be Taken by All Employees Except