Consumer Bankruptcy Law and Practice: 9.4.6.4 Continued Withholding of Income for Loans from Retirement Funds
Another exception enacted in 2005 authorizes the continued withholding of wages for repayment of retirement fund loans.223 The wage withholding must be for repayment of a loan from a plan under section 408(b)(1) of the Employee Retirement Income Security Act (ERISA) or that is subject to section 72(p) of the Internal Revenue Code, or from a thrift savings plan in the Federal Employee’s Retirement System.