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Employee Benefits > Deemed Distribution

The following information is about Deemed Distribution.

Deemed Distribution Defined

A term recently coined by the Department of Treasury to describe the taxable event of a loan failing to qualify for the participant loan safe harbor of Code section 72(p). A deemed distribution is a taxable event for the plan participant upon default of a plan loan.

This definition is in context to Employee Benefits. See more contextual defintions for Deemed Distribution.


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