In general, if your plan allows loans, you may borrow 50% of your vested account balance to a maximum of $50,000.00. You must repay the loan through after tax salary withholding. You must repay the loan within (5) years, unless you are using the money for the purchase of a primary residence. For purchase of a primary residence you may take up to thirty (30) years to repay the loan, however, you must provide documentation showing the home purchase.

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These are only general rules, your plan will have specific rules concerning loans. Please contact your Plan Administrator if you have any questions pertaining to your plan.

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Please remember these three issues concerning loans:

1. Opportunity Cost: If you withdraw money for a loan you will lose the opportunity that money would have to grow in your investment.

2. Double Taxation: loans are repaid with after tax money. When you retire and start to withdraw your money it will be subject to income tax on all withdrawals, including your loan payments (second taxation).

3. Loan Default: If you fail to repay your loan you will be subject to a “deemed distribution” creating taxes and penalties.​​
    

This loan calculation is only for illustration purposes. The actual loan specifications are determined by the plan rules and actual funds available to borrow.