C-1. Vendor loan number Loan 002 C-2. Loan Initiation Date mm/dd/yyyy (Year 1) C-3. Loan Status D C-4.

Loan Type Indicator G C-5. Original Loan Amount $5,000 C-6. Remaining Loan Balance $4,500 C-7.

Remaining Balance Date mm/dd/yyyy (Year 1) C-8. Highest Outstanding Loan Balance-12 months $5,000 Total Remaining Balances = $14,500 Total Highest Outstanding Loan Balance-12 months = $17,000 The $50,000 maximum loan rule under IRC Section 72(p) should be considered when reporting the Maximum Loan Amount Eligible-Vendor field. The comments for Maximum Loan Amount Eligible-Vendor field states that the "Maximum Loan Amount Eligible should not exceed the IRS Maximum limit of $50,000.

If it does, report the value as $50,000." In regards to the exception to the 50% limit, if the reporting party will issue a loan of $10,000 or less without regard to the 50% rule then it should report the maximum amount available based on the method it follows for determining the amount. For example, assuming the account balance at issue is $16,000. If the reporting party will issue a loan for $10,000 because it will issue loans for under $10,000 without regard to the 50% rule then it should report the MLAE as $10,000.

However, if the reporting party will apply the 50% rule in this situation then it should report the MLAE as $8,000 or 50% of the account balance. 54 SHAPING AMERICA’S RETIREMENT .