Loans Employers are allowed to place language in their plan that permits loans to employees. Examinations of plans show a trend of violations when dealing with loans. Violations include employees not making payments after receiving the loan and employees not paying the 10% excise tax for not repaying the loan. Administrators need to keep current with all loans given to employees and explain to them the importance of repayment of the loans. 403(b)/457 Plans Voluntary Correction Required Minimum Distributions The Internal Revenue Code mandates that, generally, required minimum distributions begin after an employee turns age 72 (70 ½ if reach 70 ½ before January 1, 2020). Many employees request for their distributions to begin before this date. Therefore, administrators sometimes let this requirement slip their minds. Examinations indicate this is a trend. Multiemployer Plans Voluntary Correction Hardship and Emergency Distributions Employers can also provide in their plans the option of having employees request hardship distributions and/or emergency distributions. Examinations of plans have found trends that these arrangements are not being administered properly. Administrators are not getting adequate documentation from the employee that there is a hardship or emergency. 403(b)/457 Plans 401(k) Plans