Loans From Your Retirement Plan

Public Employees Retirement System (PERS)

Loans are not permitted under this plan.

University Retirement Plan Alternative (RPA)

Employees are eligible for two personal loans and one home purchase loan. Total number of loans includes loans taken from your supplemental retirement plan.

University Tax Sheltered Annuity (TSA/403b plan)

Employees are eligible for two personal loans and one home purchase loan. Total number of loans includes loans taken from your supplemental retirement plan.

Loans From RPA and TSA Plans

Amount You Can Borrow

  • Minimum amount: $1000
  • Maximum amount is the lesser of:
    • $50,000 reduced by any previous loans you have outstanding and the amount by which your highest outstanding loan balance from all retirement plans during the prior 12 months exceeds your outstanding loan from all retirement plans on the date you loan applications is approved; and
    • 50% of your vested interest in all your retirement plan accounts.
  • If a participant has funds in a brokerage account those balances may be used in the calculation to determine the maximum loan available, however TIAA does not automatically transfer any funds out of the brokerage account back to the core retirement plan in order to be transferred to a Retirement Loan as collateral. The participant must transfer the funds from the brokerage account to the core Tier I & II investments in order for the Retirement Loan to be processed.
  • Effective October 1, 2017, new loans will only be available through TIAA. Only your account balance with TIAA will be used to calculate the maximum allowable loan amount. If you have an account balance at another recordkeeper (VALIC, Fidelity) and would like to increase your eligible loan amount, you may transfer assets from prior recordkeeper(s) to your account held at TIAA.

Total Number of Loans

  • If you defaulted on a previous loan, you will not be eligible for any type of loan moving forward.
  • An employee can only have two personal loans at any one time from all retirement plans.
  • An employee can only have one loan for the purchase of a principal residence at one time from all retirement plans. When applying for a loan for the purchase of a principal residence, you must provide either a Good Faith Estimate or a Purchase Agreement that provides information regarding the amount you need to bring to closing. We can only approve an amount up to what you need for closing including downpayment.

Process

  • Contact your recordkeeper (TIAA-CREF) to initiate the loan application process on-line.
  • Contact Human Resources to process the $50 loan compliance fee. HR can only accept Visa, MasterCard, or money order.
  • Human Resources will review your online application and once approved will notify the recordkeeper for processing.
  • Human Resources will notify you by email whether your request has been approved or not.

NSHE's Procedures Applicable to Participant Loans