Welcome to the Benefits Management, Inc. Loan Estimator Web Page. If you know some of the basic details about your 401(k) or Profit Sharing Account, you can use this page to estimate what your payments will be for a particular loan.
Please remember that your loan is subject to the provisions of your plan document and the corresponding loan program maintained by your plan administrator. However, generally a loan from a qualified plan is subject to the following rules:
If you are aware of the parameters of your loan program, you can use the work sheet below to estimate your re-payment amount. Of course, all final loan figures will have to be calculated by the plan administrator.
- When added to all of your other outstanding loans from the plan, it can not exceed the lesser of $50,000 or 50% of your vested account balance.
- There is generally a restriction as to how many loans you may have outstanding at one time.
- Loans are paid back on a regular basis (at least quarterly and generally through payroll deduction) and can not be paid back over a period exceeding 5 years.
- The interest is paid back into your own account and the applicable interest rate is most often prime rate plus 1%.