Accessing Funds: Loans
As Plan Administrator, you will need to determine if a loan is allowed under the plan. This section contains information on how to process participant loan requests.
We have included:
- Information on the paperless loan application process or, if inapplicable for your plan,
- Instructions for completing the Program form, and
- Details on sending the form to the ABA Retirement Funds Program (the Program).
This section provides a detailed description of your role, as well as that of the plan participant* and the Program.
In the chart below, you will find the steps to process a loan request.
|Steps for Processing Loan Requests||Plan Participant’s Role||Plan Administrator’s Role||The Program’s Role|
|Requesting a Loan|
|1. Determine if loans are allowed in your plan by checking the plan’s adoption agreement or by calling the Plan Administrator Line at 800.752.6313||√|
|2. Model a loan: Participant can log on to his or her account through the Program website at www.abaretirement.com or call the Customer Service Center at 800.348.2272; see “Step 2” under “Loan Requests” for more details.||√|
|3. Decide to request a loan: For fast, easy service log on through the Program website at www.abaretirement.com or the Customer Service Center at 800.348.2272 and the loan check will be issued in two business days; see “Step 3” under “Requests” for more details. |
If paperless loan process is inapplicable for your plan, the participant should complete and send the Loan Request Form to Plan Administrator
|4. Approve the Loan Request Form and send it to the Program||√|
|5. Process Loan Request Form or issue loan check based on online/telephone request||√|
|6. Send check and copy of promissory note to Plan Administrator for delivery to participant||√|
|Reamortizing an Existing Loan|
|1. Complete and send Loan Reamortization Request Form to you||√|
|2. Review and sign Loan Reamortization Request Form and send to the Program||√|
|3. Process the Loan Reamortization Request Form and update records with the new loan terms||√|
|Defaulting on a Loan|
|1. Decide if a loan default has occurred||√||√|
|2. Complete and send Loan Default Form to the Program||√|
|3. Process Loan Default Form||√|
Participants can model and request a loan through the Customer Service Center by calling 800.348.2272. After entering the Social Security Number and password, the participant should follow the prompts once he or she is at the main menu.
*The term “participant” refers to participants who are stil actively employed by your firm. New loans are not available for terminated participants.