Participant Loan
If allowed by the plan document, a participant may apply for a participant loan to be taken from their vested account balance. This amount must be repaid to the plan, which is usually required through payroll deductions on an after-tax basis. The loan payments are based on the loan’s amortization schedule (i.e. repayment schedule). Participant loans have very strict repayment guidelines and may also be restricted to limited circumstances. (See FAQ).