How The Fund Works


While you are working for a participating Y, you can borrow money from your accounts in the Savings Plan—the 403(b) Smart Account and the Rollover Account. You cannot borrow from any other accounts.

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Retirement Goal

If you have both a Rollover Account and a 403(b) Smart Account, the amount you borrow will be split proportionately between the two accounts.

Since you are borrowing from your own accounts, all interest that you pay will be credited back to your accounts.

Rules for Taking a Loan
  • You may have only one outstanding loan at a time

  • The maximum amount you may borrow is 50% of your total account balances in the Savings Plan, or $50,000, whichever is less

  • The $50,000 maximum will be reduced by the amount of your highest outstanding loan balance of the last 12 months if you took another loan from the Savings Plan

  • The minimum amount you may borrow is $1,000. (If the total balances of your 403(b) Smart Account plus your Rollover Account is less than $2,000, no loan would be available.)

  • The interest rate will be fixed at 1% over prime as quoted in the Wall Street Journal on the date the application is submitted to the Fund

  • The loan must be repaid in five years or less

  • Loan terms (payment amount and date) are set at the time the loan is taken and cannot be changed afterwards

  • Repayment is by payroll deduction

  • There is a loan origination fee of $50 that will be withdrawn from your accounts in the Savings Plan

  • Your spouse must give written consent if your total Savings Plan balance exceeds $5,000

  • Loan repayments may be suspended during a period of absence for military service

  • If you do not have enough money in your paycheck to cover the loan payment, you may send payments directly to the Fund

  • If you are unable to repay your loan, after 90 days the loan will be considered in default

  • If you leave employment with a participating Y, or if your Y ceases to participate in the Savings Plan, you must repay the outstanding loan balance. After 90 days the loan will be considered in default

  • Once a loan is considered in default, the unpaid balance, plus the accrued interest, will be deemed a taxable distribution.
  • The normal processing time for a loan is between 7 to 10 business days, assuming that all required paperwork is received on time and in good order.
To apply for a loan, you must log in to your account.