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It details how borrowing affects investments, including funding sources, proportional deduction from pre-tax funds, repayment mechanics, and implications for interest and principal. The guidance covers loan limits, minimum and maximum amounts, collateral requirements, tax treatment, interest-rate determination, initiation and processing fees, repayment rules, term-change restrictions, and handling of leave of absence suspensions.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/frequently-asked-questions-about-loans-eligibility-and-loan-terms/281756/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/frequently-asked-questions-about-loans-eligibility-and-loan-terms/281756.png","ImageObject",442,249,{"name":88,"@type":89},"Mack Lee","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-18","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",6,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"Who is eligible to apply for a Plan loan?","Question",{"text":109,"@type":110},"Eligibility covers active employees on payroll participating in the specified pre-tax 457 or pre-tax 401(k) arrangements, with the plan account balance meeting the stated minimum at application. Eligibility also ties to plan participation where the relevant account balance requirement is met.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What are the maximum and minimum loan amounts?",{"text":114,"@type":110},"The minimum loan amount available is $2,500. The maximum loan amount is the lesser of one-half of the participant’s account value (in the 457 or 401(k) Plan) or $50,000, with the $50,000 figure reduced by the highest outstanding loan balance from qualified employer plans of the same employer during the prior 1-year period.",{"name":116,"@type":107,"acceptedAnswer":117},"How are loans repaid and what rules apply to loan terms?",{"text":118,"@type":110},"Participants must repay loans in full, with repayments made through payroll deduction while actively employed. Loans are due upon expiration of the loan term or severance, and the loan term cannot be changed after issuance; partial payments are not accepted. Leave of absence suspensions may pause repayments for qualifying periods, while interest continues to accrue.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},281756,1790734493,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":136,"language":137,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":61,"update_tm":141,"read_time":79},1236954509970,"https://us-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","Frequently Asked Questions About Loans  \nWho is eligible for a Plan loan? 􀂄 Teachers’Retirement System and 403(b) Tax Deferred  \nAnnuity  \nAny employee who is in active status on payroll who  \n􀂄 NYC H+H 403(b) Tax Deferred Annuity is participating in either the pre-tax 457 or pre-tax  \n􀂄 New York City Deferred Compensation 401(k)/457 Plan 401(k) plan is eligible to apply for a loan if the plan  \nfor which the loan is taken has an account balance of  \n$5,000 or more at time of application. Funds in the Why do the loan applications require that the  \nRoth 457 or 401(k) are included in the determination participant obtain loan balance information from of loan availability. the other qualified employer plans ofthe same  \nemployer?  \nHow does taking out a loan impact my Plan The Maximum Loan Amount a participant may bor  \ninvestments? row is the lesser of one-half of their account value  \nin the 457 or 401(k) Plan or $50,000 . The $50,000  \nYour loan is funded directly from a cash-out of  \nfigure represents the maximum amount that can be  \nyour pre-tax contributions in your 457/401(k) Plan  \ntaken for all loans from qualified employer plans of  \naccounts. The withdrawal will be deducted propor  \nthe same employer. The participant is required to ob  \ntionately from all the pre-tax funds in your account.  \ntain loan balance information from the other quali  \nWhen you repay your loan, your loan payment is  \nin after-tax dollars and is applied to the interest and fied employer plans of the same employer as a rep  \nresentation that he or she is aware of the Maximum  \nfinally to the principal, thereby reducing the bal  \nLoan Amount and that the receipt of a loan from  \nance owed. Payments received on your loan will be  \nthe Plan will not cause the participant to exceed the  \ndirected to your current investment allocation in the  \nMaximum Loan Amount. The Plan Administrator  \napplicable Plan and will be reflected on your state  \nshall not be liable for any adverse tax consequences.  \nment.  \nThe participant is strongly advised to address any questions regarding the tax consequences of loans  \nWhat is the minimum amount of a loan?  \nor loan limits to a qualified, independent tax advisor  \nThe minimum loan amount available from either the before submitting an application for a loan.  \n457 or the 401(k) Plan is $2,500 .  \nDo I have to put up collateral and qualify for a  \nWhat is the Maximum Loan Amount I can borrow? loan in the same way Iwould at a bank?  \nThe Maximum Loan Amount a participant may No.  \nobtain is the lesser of:  \nHow are loans treated for tax purposes?  \n1. One-half of the available balance in the 457 or  \nFunds borrowed from the Plan under these condi-  \n401(k) Plan (account balance minus current out  \ntions are not treated as distributions, provided they  \nstanding 457 or 401(k) loan balance);  \nare repaid in accordance with the terms of the loan.  \nor Therefore, no taxes are withheld or due when a loan  \n2. $50,000 reduced by the highest outstanding bal- is received.  \nance of loans from all qualified employer plans  \nof the same employer during the 1-year period May Ideduct the interest Ipay on the loan from my  \nending on the day before the date on which such taxable income if I itemize deductions?  \nloan is going to be made. No. Under federal tax law, no deduction is permitted  \nfor interest paid on a loan from the plan, regardless  \nWho are qualified employer plans of the same of the purpose of loan.  \nemployer?  \nWith regard to the City of New York, qualified em- How is the interest rate determined for Plan loans?  \nployer plans of the same employer refers to all of the The interest rates for Plan loans will be based on the  \ndifferent defined benefit plans and defined contribu- prime rate published in The Wall Street Journal on  \ntion plans available to City employees: the first business day of each month, plus 1%, and  \n􀂄 NYCERS such rate is fixed for the life of the loan.  \n􀂄 NYC Firefighter Pension Fund  \n􀂄 NYC ","cbCailYNplT2fnYS","https://ap.wps.com/l/cbCailYNplT2fnYS","pdf",30097951,10,"English","# Frequently Asked Questions About Loans\n## Eligibility for a Plan loan\n## Loan limits and account requirements\n## Loan impact and investment treatment\n## Fees, repayment, and term rules\n## Tax and interest-rate guidance","[{\"question\":\"Who is eligible to apply for a Plan loan?\",\"answer\":\"Eligibility covers active employees on payroll participating in the specified pre-tax 457 or pre-tax 401(k) arrangements, with the plan account balance meeting the stated minimum at application. Eligibility also ties to plan participation where the relevant account balance requirement is met.\"},{\"question\":\"What are the maximum and minimum loan amounts?\",\"answer\":\"The minimum loan amount available is $2,500. The maximum loan amount is the lesser of one-half of the participant’s account value (in the 457 or 401(k) Plan) or $50,000, with the $50,000 figure reduced by the highest outstanding loan balance from qualified employer plans of the same employer during the prior 1-year period.\"},{\"question\":\"How are loans repaid and what rules apply to loan terms?\",\"answer\":\"Participants must repay loans in full, with repayments made through payroll deduction while actively employed. Loans are due upon expiration of the loan term or severance, and the loan term cannot be changed after issuance; partial payments are not accepted. Leave of absence suspensions may pause repayments for qualifying periods, while interest continues to accrue.\"}]","Frequently Asked Questions About Loans - Eligibility and Loan Terms | PDF",1789567932]