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 were increased
- For loans made before the end of a period of 180 days after March 27, 2020, the maximum retirement plan loan limits were increased from $50,000 or 50% of vested account balances to $100,000 or 100% of the vested account balance.
The UU Organizations Retirement Plan’s loan policy limits the number of loans allowed; a maximum of 2 plan loans is permitted.
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.