401(k) Loans
The Deseret 401(k) Plan is designed to help ensure financial security after you retire. If you need the money in your account while you are actively employed, you can take a plan loan. Generally, we discourage borrowing from your 401(k), but it could make sense in some situations.FAQs
The minimum amount is $500. The maximum amount is 50% of your eligible account balance, not to exceed $50,000 in a 12-month period. The amount you can borrow is reduced by your highest loan balance during the previous 12 months, even if you have repaid the loan.
You must be an active employee receiving regular paychecks from a participating employer, including if you’re on paid leave or receiving Disability Plan benefits. You must have an account balance of at least $1,000. You cannot borrow EDRC funds.
You can apply for a 401(k) loan on the Empower website. To get to Empower, log in to www.dmba.com. Navigate to My Retirement and under Deseret 401(k) Plan select Access Account.
On the Empower site, navigate to Account and select Loans. Select Request a new loan to see the interest rate and associated fees. Select Request a General Purpose Loan. Enter the amount you want to borrow. You will see a table showing payment options for 12, 24, 36, 48, and 60-month loan terms. These amounts will be withdrawn from each paycheck.
On the Empower site, navigate to Account and select Loans. Select Request a new loan to see the interest rate and associated fees. Select Request a General Purpose Loan. Enter the amount you want to borrow. You will see a table showing payment options for 12, 24, 36, 48, and 60-month loan terms. These amounts will be withdrawn from each paycheck.
Yes. You can make principal payments or pay off the entire loan early without a penalty if you are making your scheduled loan payments. You are required to pay the interest accrued up to the payoff date.
You must pay the lump sum of the loan within 30 days of ending your employment or the loan balance will be treated as a withdrawal from your account with the associated tax consequences.
If you are older than 59½, end your employment, retire, or become permanently disabled, you may be able to withdraw all or part of the money in your account. Taxes and penalties may apply to withdrawals.
No. You can only have one loan at a time. You must be debt-free from your previous loan for 45 days to qualify for a new loan.
That depends on your situation. For more information, talk with your financial planner.