MMC Benefits Handbook
Home Purchase Loan
Home Loan Interest Not Deductible
The interest portion of repayments on a home loan from the Plan is not tax deductible, since loans from the Plan are not mortgage loans. In fact, you may not have a deduction available for interest payments on other types of Plan loans. (You may want to consult with a tax professional.)
Proof of Home Purchase
A home purchase loan will not be approved unless you submit documentation in accordance with the Home Loan Instructions. Such documentation will be reviewed for approval by the Plan Administrator's designee.