Retirement account loans can provide eligible account holders with access to funds while keeping their long-term retirement strategy in view.
A retirement account loan is a financing arrangement that may allow an eligible participant to borrow against an account balance, subject to the rules and terms governing the applicable retirement plan.
Rather than treating retirement savings as ordinary cash, this type of financing is designed around the specific rules of the retirement plan and the participant's eligibility.
Understand the main considerations before deciding whether retirement account financing is appropriate for your circumstances.
Financing may be based on the eligible balance and rules of the applicable retirement plan.
Eligible loans generally follow a defined repayment schedule established by the applicable plan terms.
Review applicable terms, conditions, repayment requirements and account considerations before proceeding.
Borrowing from a retirement account can affect long-term retirement outcomes, making careful consideration important.
Applicable eligibility requirements, limits, repayment provisions and other terms should be reviewed before an application is submitted.
Our support team can help explain the application process and direct you to the applicable plan information.
The exact process depends on the retirement plan and applicable account rules.
Confirm that your retirement account and plan permit participant loans.
Examine applicable limits, repayment requirements, fees and other plan conditions.
Provide the required information through the applicable account or application process.
If approved, follow the established repayment schedule and applicable plan requirements.
Retirement account loans are not available from every type of retirement arrangement. Eligibility and borrowing limits depend on the applicable plan documents and governing rules.
Retirement account borrowing can have consequences beyond the immediate financing need.
Money removed from an investment account may have less time to participate in potential investment growth while it is outstanding.
Missing required repayments or failing to satisfy applicable plan conditions can result in additional consequences.
Changes in employment or participation can affect the treatment and repayment requirements of an outstanding retirement account loan.
Certain circumstances may create tax consequences. Review the applicable plan documents and seek qualified tax advice where appropriate.
Sign in to review available account services or contact our support team for assistance with the retirement financing process.