Some plans allow you to borrow from your plan account. Log in to your account and check the Plan Information section under the References tab to find out if your employer's plan permits loans. Keep in mind, however, that even if your plan permits loans, your investment provider may not. So be sure to contact your financial professional to find out if your investment provider also permits loans

Loans vs. Withdrawals

Unlike withdrawals, a loan can give you access to your retirement savings without taking a taxable distribution or permanently reducing your retirement savings. Loans can also be taken for any reason and do not require a "qualifying event" such as quitting your job or a financial hardship.

You should always consider all other alternatives before taking a loan. The true cost of the loan is more than just the interest you pay; it also includes the lost interest and/or growth from market returns. However, if you do need to borrow, taking a loan from your plan has advantages: it requires less paperwork than if you were to borrow from a bank or other lending institution; you don't need to verify your creditworthiness; and the interest rate is usually lower than other alternatives such as a credit card or personal loan.

How Loans Work

Generally, the maximum amount you can borrow is 50% of your account balance up to $50,000. Loan rules vary by plan and investment provider, so be sure to check your employer's plan and your investment provider's loan rules.

If you take a loan:

Account Access

Need Help?

Salary Reduction Forms

Please be advised that this web content is not intended as legal or tax advice. Accordingly, any tax information provided in this web content is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transactions(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.