Borrowing Money From Your Account*
The loan feature allows you to borrow from your account and pay yourself back with interest through payroll deductions. Investment earnings stop on any money borrowed. You pay back the loan, plus interest, with automatic payroll deductions. Your loan repayments, including interest, go directly into your plan account, using your current investment election percentages. The interest rate for loans is the prime rate as quoted in the
Wall Street Journal plus 1%, updated quarterly. The maximum amount available to borrow is the lesser of: 50% of your vested account balance or $50,000 (less the highest outstanding loan balance within the last 12 months).
There are two types of loans: General loans, with a maximum repayment period of 5 years; and Residential loans, with a maximum repayment period of 30 years. The election to make loans available is made at the discretion of your employer. If your Plan has a loan feature, the procedure for requesting a participant loan is as follows:
- Call Customer Service at (800) 348-2272. Press 5 for "other options", then press 2. The system will inform you if you are eligible for a loan and the amount available, or log on to your account through this website.
- Indicate whether the loan is for the purchase of a primary residence (a residential loan).
- Enter the amount you would like to borrow, the loan repayment schedule and the repayment period.
- The loan check will be mailed to your address of record two business days after the loan is processed.
You can also request a loan by following these procedures:
- Complete Form 20, "Loan Request Form" and send to the Program (obtain all signatures as required). Go to the Forms section of this website to print the form.
- The Program processes the request and check will be mailed to your address of record two business days after the loan is processed.