Participants can watch this demonstration to learn what their loan options are, acquire some helpful tips before requesting a loan, and then guide them through the process to request that loan.
If you would prefer to read this guide instead, you can follow along with the dialog transcribed underneath this video.
During this demonstration, we’ll go over the capabilities to run what your loan options are as a participant on the RPC participant web.
Once you’re signed into the participant web, you’ll be loaded to the participant dashboard. To view what your loan options are, you’ll hover over the ‘manage your account’ tab, and then select the ‘loan options’ tab.
This will load to the loan options page, where you can use a calculator to determine how much your loan payment would be if you would request a loan. Here the screen says that I may borrow up to $25,410 based on the current provisions and any IRS limits.
If you click on the ‘what you should know’ link, a pop-up will appear that shows you what sort of limits at your plan and the IRS has. For example, you may borrow the lesser of fifty percent of your vested balance or fifty thousand dollars. It also lists the minimum loan amount, your maximum loan amount, your minimum duration, or how long or short of loan that you can take, as well as how long a loan that you can take. Again, many of these things are restricted by your plan document loan procedures and the IRS.
If you’re curious how much your loan payment would be if you would take out a loan, you can simply click on the arrow next to ‘quick loan calculator’. The website will automatically generate what your interest rate would be and you can select your loan amount requested. In this case, I will select $10,000. Let’s say I want to take a year, or a loan out for two years, and my pay schedule is monthly, so I would do 24 long payments. I simply click on calculate and the system will calculate an amortization schedule for your review.
Here, it says my monthly loan payment based on these provisions would be $434. Then I can click on ‘view amortization schedule’. A pop-up will load to show what your amortization schedule looks like as you pay off the loan. If the amortization schedule looks good to you and this is the dollar amount that you would like to request for a loan, you can simply visit the ‘forms documents and reports’ tab. click on the ‘forms and documents’ sub tab to obtain a loan request form complete, then send to retirement plan consultants to process the loan.
If you have any questions on requesting a loan, or any other items on the participant dashboard, or the participant website, feel free to call us at 877-800-1114. Thank you, from Retirement Plan Consultants.