If your Single(k) plan includes a loan provision, you may be eligible to borrow from your retirement savings by following the steps below. Loans are optional and must be permitted by your plan documents.

Who This Applies To

This information applies to Single(k) plan sponsors who have elected to include the optional loan provision in their plan. If you're unsure whether loans are permitted under your plan, please contact us before proceeding.

Loan Requirements and Limits

Before applying, review these loan parameters:

  • Minimum loan amount: $1,000
  • Maximum loan amount: The lesser of:
    • 50% of your vested account balance, or
    • $50,000 minus your highest outstanding loan balance in the last 12 months
    • Example: John has a $150,000 vested balance. 50% is $75,000, but the maximum he can borrow is capped at $50,000.
  • Maximum number of loans at one time: One (1)
  • Interest rate: Prime + 2%
  • Loan terms:
    • General-purpose loan: Up to 5 years
    • Primary residence loan: Up to 30 years

How to Request a Loan

  1. Download the Loan Application
  1. Complete and Submit the Application
  1. Wait for Loan Document Processing
    • It takes up to 3 business days to prepare your loan documents.
    • Once processed, we’ll send you:
      • A loan amortization schedule
      • A promissory note
      • Instructions for requesting funds from your brokerage account
  1. Request Your Loan Distribution
  • After receiving your documents, initiate a withdrawal through your custodian using the provided instructions.

Important Notes About Loan Repayment in Your Single(k) Plan

  • You are responsible for making loan payments according to your amortization schedule.
  • All payments must be deposited back into the correct custodial account in the name of the plan.
  • We recommend using a single contribution source to fund the loan. This simplifies future tracking and reporting.

Need Help?

If you need assistance, please email us at singlek@myubiquity.com.