Your Plan may permit Participants to borrow the lesser of $50,000 or 50% of their vested account balance (reduced by the highest outstanding loan balance, if any, in the previous 12-month rolling period) to be repaid over a period of no more than 5 years (30 years if purchasing your primary residence) in equal installments through payroll deductions from net wages (after-tax dollars). Under the CARES Act of March 2020, individuals affected by the Coronavirus may be eligible* to borrow the lesser of $100,000 of 100% of their vested account balance. Your Plan may permit you to have more than one active loan at a time. Unlike a loan from a bank, since you would be borrowing from your own retirement account, interest payments will be paid back into your retirement account. Please review the Summary Plan Description for details on the loan interest rate in your Plan. There is a one-time loan initiation fee of $175 plus the custodial institution's check transmittal fees which are deducted from your account balance (not your loan proceeds). There are no ongoing loan maintenance fees. Loan payments must be made in accordance with an amortization schedule which follows your payroll schedule. Participants are not allowed to voluntarily suspend loan payments unless Plan provisions allow for bona fide leave of absence suspension of payments or a Coronavirus* suspension of loan payments. No accelerated or additional payments will be accepted, but you may pay down the outstanding balance of your loan in one lump sum if you choose. If you default on your loan payments, the outstanding balance will be converted into taxable income for the year of the default. You will receive a Form 1099-R detailing the tax implications of your loan default. Processing times for a loan withdrawal range from 5 to 15 days upon receipt of a complete loan application and the subsequently-issued promissory note. You may continue to make contributions to your retirement account while making loan payments. 


* You are an eligible individual if you satisfy one of the following criteria: (1) You, your spouse, or a dependent (as defined in Code section 152) are diagnosed with the virus SARS-CoV-2 or with Coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention. (2) You, your spouse, or a member of your household have/has experienced adverse financial consequences as a result of being quarantined; being furloughed or laid off; or having work hours, pay, or self-employment income reduced; had a job offer rescinded or a new job’s start date delayed due to such virus or disease; being unable to work due to lack of child care due to such virus or disease; closing or reducing hours of a business owned or operated by you due to such virus or disease; or other factors as determined by the Secretary of the Treasury (or the Secretary's delegate). Note: a “member of the household” is someone who shares your principal residence. You may self-certify to your eligibility on the withdrawal form.


Please visit the Forms section of our website (http://forms.rpgconsultants.com) to download a PDF copy of the loan withdrawal form for your Plan. Forms are also available in Spanish by clicking on the 3rd tab on the left-hand side of the Forms page. Please be sure to review the “Loan Notice” on the Forms page which contains additional details on loan policies.