Can I take a loan from the UU Retirement Plan?

Participants may apply for an account reduction loan for general purposes, for up to a five (5) year term, of up to 50% of their account balance, subject to governing rules and not to exceed the regulated limit, currently $50,000.

Note that before taking an account-reduction loan from your retirement funds, advisors generally recommend carefully reviewing all other available options. It is widely recognized that individuals may encounter changing circumstances that negatively impact their ability to repay their loan timely. Defaulting on loan repayment is a taxable event.

Participants may login to their account at UUA Empower OR call 833-UUA-2023 (833-882-2023) with any questions about taking a loan from their UU retirement plan savings, or regarding repaying loans, including CARES Act loans.

Purchase of Primary Residence

For purchase of a primary residence for the Participant, or to preclude foreclosure of the primary residence of the Participant, an account reduction loan with a term of up to ten (10) years is permissible, of up to 50% of a participant’s account, subject to applicable regulations, not to exceed $50,000.

Repayment

For either the general-purpose or primary-residence-purchase account reduction loan, both principal and interest are paid back into the participant’s account. Repayment is accomplished via automated draft of the participant's bank account. Due to applicable federal regulations, a defaulted loan is a taxable event, with an additional penalty if the individual is under age 59½. The loan interest rate is 1% over the Prime Rate published in the Wall Street Journal on the first business day of the month before the loan is originated.

Note: Loan repayments in the Empower system always show as a payroll contribution even if participant is no longer in service with a participating employer or making loan repayment through payroll contributions.  In the Empower system, this is what routes the loan repayment back to the appropriate borrowed money sources.

Request a loan

To start a loan request, you can call Empower and speak to a representative, or log into your account. When logged in, on the right side under I want to, click on More, and then on Take a loan (picture below).

For more information contact retirementplan@uua.org.