Accessing Funds: Loan Repayments
For information on loan repayments, see “Submitting Contributions & Loan Repayments” under Contributions.
Loan repayments are subject to timely deposit rules. To learn more about timely deposit rules, review the information under “Submitting Contributions.”
Any loan payments processed by the close of business on the last business day of the quarter will be reflected on the participant’s quarterly statement. Quarterly statements are mailed no later than 10 business days after the end of each calendar quarter.
Payments must equal the exact amount expected and in the frequency expected. If the payment amount exceeds the amount expected, it may be returned, as excess payments to principal may not be made.
Loans can be paid off in full at any time with no penalty.
Terminated participants may submit loan repayments directly to the Program if permitted by your firm as long as the repayment is accompanied by a Loan Repayment Remittance Form. Payments should be submitted in the expected payment amount and expected frequency. For that reason, terminated participants may want to reamortize the loan to a more convenient repayment frequency (e.g., your payroll schedule may be semi-monthly but participants want to start remitting repayments on a monthly basis). To do that, the participant may submit a Loan Reamortization Request Form.