In most cases, yes. However, not all retirement plans allow participants to take a loan. If you are eligible for a loan from your retirement plan, the minimum amount you may borrow is $1,000. The maximum loan amount is the lower of the following:
1) 50% of your vested account balance
2) $50,000, less the highest outstanding loan balance in the preceding 12 months
Loans are available for terms between 1 and 5 years or between 1 and 10 years for a principal residence loan. Repayments are drafted monthly from your financial institution on or around the 5th or 20th.
The interest rate will be fixed at the time the loan is modeled at 1% above the prime rate as published in The Wall Street Journal. All interest paid, along with principal, will be credited to your retirement account. A loan origination fee of $50 and the first annual maintenance fee of $40 will be assessed upon issue of the loan. Subsequent annual maintenance fees are applied annually on the anniversary date of your loan.
If you would like to take a loan, log into your MyGuideStone® account and complete the steps below:
1. Click the “Retirement and Investments” tab
2. Click “Loans”
3. Under "Loan Modeling", click “Model a Loan” to open the tool
4. Complete the loan application and then provide your electronic signature.
If you have not created a MyGuideStone account, simply go to MyGuideStone.org, click on “Register now with MyGuideStone” and follow the steps for registration.