Rayvt:<<<"Interest" is defined under the Finance Code as "compensation for the use, forbearance, or detention of money" .... please explain again how it does not apply in the context of a 401-k loan.>>>"Sure. Easy. You don't pay interest to yourself. You don't pay compensation to yourself."So all those people who own simgle member LLCs or any other disregarded entity and pay themselves a salary reaaly do not have earned income? You ever try your arguemtn with the IRS."It's a logical impossibility. The entity (you) that is receiving the "interest" is the same entity as is paying the "interest"."The IRS begs to differ (at least with respect to 401-k plans), otherwise, there would be no need to plan adminstrators and trustees with fiduciary duties.Regards, JAFO
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