As a reminder, effective January 1, 2015, the loan rules were amended to permit up to two outstanding loans total from the 401(k) and 457 plans at any one time, reduced from seven. The new loan provision, effective January 1, 2016, further revises the number of loans permitted at a time from two to one.
While it is possible there are times a loan from your 401(k) or 457 plan may be your only or best option, taking that loan can have a detrimental effect on your retirement savings. There are many factors that should be taken into consideration before looking to your retirement savings account as a revenue source.
If you are considering taking a loan from your SOM 401(k) or 457 and would like to discuss how this may impact your retirement plan or to explore other possible revenue sources, do not hesitate to contact us toll-free at 1-866-444-6246.