PERAPlus 401(k) Plan

Borrowing Money from Your Account

The loan feature allows you to borrow from your pre-tax and Roth account balances and pay back the loan, plus interest, through automatic checking or savings account deductions. Your account balance will be reduced by the amount of your loan. Earnings do not accrue on the amount borrowed until loan proceeds are paid back to your account. Your loan repayments, including interest, go directly into your Plan account, using your current investment fund election percentages. The interest rate for loans is the prime rate as quoted in the Wall Street Journal plus 1 percent.

There are two types of loans:
  1. General loans, with a repayment period of 1 month up to 5 years.
  2. Residential loans, with a repayment period of 1 month up to 15 years.

There is a $75 nonrefundable loan application fee for each loan taken. You may have a maximum of two outstanding loans at one time.

Your account balance needs to be at least $1,132 to accommodate a 5 percent reduction for market fluctuation and the fee.

If your Plan account available balance* is: You may borrow (combined total for all outstanding loans)
$1,132 to $10,000 The entire balance
$10,001 to $20,000Up to $10,000
More than $20,000Up to 50 percent of your account
(not to exceed $50,000)

For purposes of calculating loan maximums, the account balance is first reduced by 5 percent for market fluctuations and then reduced by $75 for the loan fee. The remaining balance is the amount used to determine how much you can borrow.

If you have funds invested in the Self-Directed Brokerage Account (SDBA), those funds will be taken into consideration when calculating the maximum amount you may take as a loan. You are required to keep $500 invested outside of the SDBA prior to issuance of your loan. In addition, Voya cannot transfer funds out of the SDBA on your behalf. If you would like to take a loan that includes amounts invested in the SDBA, you must transfer funds out of your SDBA prior to the time that your loan is issued. Voya will not delay processing of your loan, so transfers should be made prior to requesting a loan.

The maximum outstanding loan balance in any 12-month period is $50,000. This limit includes loans you have with a 403(b) tax-sheltered annuity and/or a 457 deferred compensation plan with your current employer.

To access the "Loan" section in the Loans & Withdrawals section and find out how much of your account you may borrow, log on through PERA's website:
  • Click "Back to Login"
  • Enter your User ID and password then click on “PERAPlus 401(k) Account Access”
All residential loans require a signed purchase contract and any other appropriate documentation.

You can request a loan application by calling 1-800-759-7372 and selecting the PERAPlus option, or through the Forms of this website.

It takes about three business days after your initial loan request to generate a loan note, which is then mailed to you for your signature. Providing the loan is approved, a check will be issued and mailed within three business days after the Plan receives your completed and signed documents. (Completed loan documents must be returned within 30 days.)