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Apply for a Loan
If you have more than one account in the 403(b) Savings Plan, your loan amount will be split amongst all of your accounts. Because you’re borrowing from your own savings, any interest you pay goes right back into your account.
What You Need to Know Before Requesting a Loan:
Understand Your Eligibility
- You must be actively employed by a participating YMCA.
- Your 403(b) Savings Plan balance must be at least $2,000 (combined across accounts).
Explore the Loan Rules
- You may borrow up to 50% of your total 403(b) Savings Plan balance, or $50,000, whichever is less. The $50,000 limit will be reduced by the amount of the highest outstanding loan balance of the last 12 months if you took another loan from the 403(b) Savings Plan.
- The minimum loan amount is $1,000.
- Only one loan can be outstanding at a time.
- The interest rate is fixed on the day your application is submitted.
- If your total 403(b) Saving Plan balance is more than $5,000, your spouse must give written, notarized consent.
Know Your Repayment Responsibility
- Repayments are made through payroll deduction and your repayment schedule (payment amount and due dates) is set when your loan begins. It cannot be changed.
- All loans must be repaid within five years.
- If your paycheck doesn’t cover your payment at any time—or if you don’t receive a paycheck that pay period—you are still responsible for the loan repayment and must send it directly to Y Retirement.
- Loan repayments may be temporarily suspended during certain military absences.
How to Apply for a Loan
Visit Your Online Account
Log in to your online account and navigate to the left-hand menu. Click “Apply for a Loan”.
Complete the Form
Fill out the form completely. If you’re married and your 403(b) Savings Plan balance is over $5,000, your spouse must consent and their signature must be notarized.
Upload Your Documents Online
Upload the completed form (without erasures!) using the Document Uploader in your online account.
Once we receive your completed form in good order, processing takes at least 14 business days, not including mailing time. A $50 loan processing fee will be deducted from your 403(b) Savings Plan balance.
IMPORTANT INFORMATION
If You Can’t Pay Back Your Loan, it will be in Default
A loan will be considered in default if:- A payment is more than 90 days past due, or
- You leave employment with a participating Y (or your Y stops participating in the 403(b) Savings Plan) and do not repay the full balance within 90 days.
Once a loan is in default, the unpaid balance plus accrued interest becomes a distribution reportable to the IRS and you will be responsible for any applicable taxes and penalties.
If you leave Y employment with an outstanding loan, you must pay it off in full within 90 days of the oldest overdue due date to avoid default. After your Y submits final contributions and reports your employment termination, Y Retirement will send you a letter with your outstanding loan balance.