While the plan is intended to help you invest for the long-term, you may borrow from your account and pay it back with interest. The following are some key loan provisions:

  • Minimum amount: $1,000
  • Maximum amount: cannot exceed the least of 1) 50 percent of your total vested account balance, less any outstanding loan balances; 2) $50,000, less your highest outstanding loan balance(s) from all qualified plans over the previous 12 months; or 3) the value of the
    account(s) used to fund the loan.
  • Maximum number of loans at any one time: 2*
  • Waiting period to apply for another loan: 30 days after payoff of previous loan.
  • Repayment: up to five years for a general-purpose loan; up to 25 years for a principal residence loan.
  • Application fee: $50 per loan, nonrefundable.

It may take several pay periods for your first loan payment to be deducted from your paycheck. Your loan confirmation letter will include estimated dates for your first and final payments.

* Effective January 1, 2018, the maximum number of loans was reduced from three to two. If you already had three loans prior to January 1, 2018, you are not required to pay off one of them in order to comply with the new two loan maximum.