More details to this question:
Beginning of this year I borrow from my 403B, during the sign up process. I authorize my employer to take out $80.00 via payroll deduction. On July 20, 2016 I receive a letter via email from Fidelity stating that my loan has defaulted and it has been reported to IRS. I contact Fidelity asking what happen and why they wasn't receiving payments. They basically stated that your employer never sent us payments on which the first payment suppose to started on 1/29/2016. I have contact my employer numerous of times about this matter. Each time that I have call they kept telling me that they're working on getting it reserved and they're working with Fidelity. After weeks of calling them, I call my employer today to get a update (since they never did) They basically telling me there nothing that they can do since it been submitted to IRS. My question is can anything be done about this matter? I really don't think it's fair for me to penalized for something I don't have any control over.
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2 Awards
Was the employer actually taking out the $80.00 each month? If they were, they are likely liable for sending the money to address the loan. If they were not taking out the $80.00, the responsibility may fall on you. If you did not see the deduction, it would probably be your responsibility to send the money in to pay the loan yourself.
Answered on Aug 19th, 2016 at 8:23 AM
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