Retirement
401(k) Loan Option
In times of economic hardship or an unplanned financial crisis, there might be times when you want to take out a loan that is tied to your 401(k) account.
The following guidelines apply:
- You may take a loan of up to the lesser of $50,000 or 50% of your vested account balance (reduced by the amount of the highest outstanding loan balance, if any, during the previous 12 months).
- The minimum amount of a loan is $1,000.
- A maximum of two loans may be outstanding at a time. This plan provides a maximum loan term of 60 months. However, if the loan proceeds will be used to purchase a primary residence, the loan term may be from 61 to 300 months.
- A loan initiation fee of $55.00 will be charged against your account for each loan requested.
- Loan repayments will automatically be made by payroll deduction and may not be suspended.
- If you leave employment and want to continue loan repayments, you may request New York Life to invoice you directly.
To apply for or to see if you are eligible for a 401(k) loan, log in to your account at mylife.newyorklife.com. From the My Investments tab, click on the "Loans" drop-down box. The amount of loan in which you are eligible will appear on the Web page, along with the applicable interest rate. You will need to complete two of the following three items to calculate your loan:
- Loan amount
- Loan duration
- Repayment amount