You can make extra payments or pay off your 401(k) loan at any time. All loan payments must go through your employer’s payroll process, Ubiquity cannot accept direct payments from you.

Who This Applies To

This article is for participants who currently have a 401(k) loan through their Ubiquity-managed plan.

How to Make an Extra Loan Payment

All loan payments are processed through your employer’s payroll. To make an extra payment:

  1. Contact your plan administrator/sponsor (employer) and let them know how much extra you’d like to contribute.
  2. Your employer may collect the payment by:
    • Withholding additional funds from your paycheck, or
    • Accepting a check from you.
  3. Your employer will submit the extra payment along with regular payroll.

⚠️ Important Rule on Equal Payments:
Loan payments must be made in substantially equal amounts. This means:

  • ✅ Acceptable extra payments: multiples of your regular loan payment (e.g., if your regular payment is $100, you can pay $200, $300, $400, etc.).
  • ❌ Not acceptable: partial or uneven amounts (e.g., $150, $225).

How to Increase Your Regular Loan Payment

If you want to pay more each paycheck:

  • Ubiquity can re-amortize (recalculate) your loan repayment schedule.
  • A one-time fee may apply (see Participant Fee Disclosure under 401(k) > Documents + Forms on your account dashboard).
  • Contact us to request a new schedule.
  • Notify your plan administrator of the re-amortization so that they can update your payroll withholding.

How to Pay Off Your Loan in Full (While Employed)

You can pay off your outstanding loan balance at any time with no additional fees.

  1. Log in to your account dashboard
  2. Go to 401(k) > Loans.
  3. Locate the Payoff Amount (Today)—this is your full payoff amount as of today.
  4. Provide a check to your employer for that amount before their payroll cutoff date.
  5. Your employer will submit your final loan payoff.
  6. Processing takes 4–5 business days once submitted, plus an additional 1–2 business days to fully close out the loan.

👉 If a small residual balance remains (due to additional accrued interest), contact us for instructions on paying the final amount.

Paying Off Your Loan After Leaving Your Employer

If you are no longer employed with the company, you must still follow the same process outlined above.

  • Payments must go through your former employer, Ubiquity cannot accept direct loan payments from you.

What Happens if You Don’t Follow These Rules

  • Uneven or partial payments that don’t align with IRS requirements may be rejected.
  • If loan payments stop (for example, after termination of employment), your loan could go into default.
  • A defaulted loan is treated as a taxable distribution by the IRS, which means you may owe income taxes and, if under age 59½, an additional 10% early withdrawal penalty.

Need Help?

If you have questions or need to re-amortize a loan, email us at info@myubiquity.com or chat 24/7 by clicking the chat icon after logging into your account.