The UU Retirement Plan adopted the CARES Act Coronavirus-Related Loan Provisions
The following information was created on April 9, 2020 during a time of rapid changes. Please join us across the miles, in taking several moments to invite a calm approach to the information newly emerging.
Utilizing relief provisions gives our participants flexibility as they face tough financial decisions during this crisis.
Those without an urgent need to take a loan from their retirement plan savings are encouraged to maintain focus on their long-term saving goals and strategies.
If you have existing retirement plan loan payments
- You may be able to defer payments for one year and extend the term of your loan by one year.
- Interest will continue to accrue, and the loan will be reamortized.
- Delaying repayment increases the total amount to be repaid.
- Repayment deferral is not automatic, it must be requested by contacting TIAA.
Retirement plan loan limits are increased
- Maximum retirement plan loan limits have been increased from $50,000 or 50% of vested account balances to $100,000 or 100% of the vested account balance for loans made before September 23, 2020, which is 180 days after March 27, 2020, the date the CARES Act was signed into law.
This is also dependent on the UU Organizations Retirement Plan’s loan policy, the type of loan, the number of loans allowed, and limits offered within our plan. We currently allow participants a maximum of 2 plan loans.
If you decide that taking a loan under the temporary provisions' increased limits is necessary, the loan approval process will remain the same as it does for non-coronavirus-related loans.
Note: Any loan in default is treated as a taxable distribution from the Plan.
Visit TIAA.org/uua to log in to your account or call TIAA, at 800-842-2829, if you have questions related to applying for a loan, associated loan fees, or the possibility of deferring repayments to on an existing retirement plan loan and how doing so will increase the total amount you repay.