Eligibility for Loans
The Plan permits a Participant to borrow money from his/her 401(k) account. The minimum loan amount is $1,000.00. The interest rate charged on the loan, and paid back to the account, is the prime rate plus one percent, currently 4.25%. Only two loans may be outstanding for each participant at any time. A loan must be repaid to the 401(k) Plan within five years except for loans used to acquire a principal residence. If a loan is used to acquire a principal residence it must be repaid within fifteen years. The maximum amount that may be borrowed by a Participant is one-half (½) of his or her 401(k) account balance or $50,000.00, whichever is less.
If you are married, spousal consent will be required for all loans under the Plan.