How to Request a Loan

This article walks through requesting a 401(k) loan. Confirm you are eligible first. See Can I Take a Loan, and How Much?

• Confirm your plan offers loans. Log in and check whether the Loans option appears under Manage.

• Know how much you can borrow. Federal law limits you to the lesser of 50% of your vested balance or $50,000, reduced by your highest loan balance in the previous 12 months. Your plan may set a lower limit.

• Decide on the purpose and term. General purpose loans are typically repaid within five years. A loan to purchase your primary residence may qualify for a longer term if your plan allows, and will require documentation of the purchase.

• Confirm your email address on file is current and one you can access.

1. Log in to your account at nesteggs401k.com/login

2. Select Manage, then Loans.

3. Loan Modeling then Take me There.

4. Enter your loan details. You will select the loan purpose, the amount, and the repayment term. The screen shows the maximum amount available to you.

5. Click Calculate Payment.

6. Then select Request Loan and enter your payment method preference (check or ACH direct deposit).

7. Review the loan terms. Confirm the interest rate, the repayment amount per pay period, the number of payments, and any fees before continuing.

8. Submit the request.

9. Your plan administrator authorizes the loan where required by your plan.

10. Your plan issues the loan proceeds according to the delivery method you selected.

11. Your employer begins payroll deductions. Confirm the deduction appears on your next pay stub.

Your repayments come out of your paycheck. Your employer sets up the deduction. There is normally a lag of one or two pay periods between when the loan is issued and when the first deduction appears.

Check your pay stub. If deductions have not started within two pay periods, contact your employer's payroll department. Missed payments can put your loan into default, which makes the unpaid balance taxable.

You can pay the loan off early. See How to Pay Off Your 401(k) Loan.

If you go on unpaid leave or leave your job, contact us before it happens. Repayment rules change and the consequences of doing nothing are significant. See What Happens If You Fall Behind on 401(k) Loan Payments?.

The Loans option is not available. Your plan does not offer loans, or you are not eligible. Check your Summary Plan Description.

The maximum available is lower than I expected. The most common causes are a vesting schedule that limits your vested balance, an existing loan, or a loan you repaid within the last 12 months. See Can I Take a Loan, and How Much?.

I have an existing loan and cannot request another. Many plans allow only one outstanding loan at a time.

My request has not moved. Check whether it is waiting on your signature, your spouse's notarized consent, or your employer's authorization.

Call 866-202-4646 or email info@nesteggs401k.com.