Loans

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    Loans

    You are permitted to borrow from your JRB retirement account. A loan provides an opportunity to access the money in your retirement account without taking a taxable distribution.

    Keep in mind that, by taking a loan, you miss out on potential investment gains while the money is not in your account.

    Interest on the loan is the prime rate at the time you initiate the loan. Your monthly payments, both principal and interest, are redeposited into your JRB account. The loan can be repaid at any time. There is a one-time set-up charge of $150 to obtain a loan.

    Standard Loans

    You can borrow up to 50% of your account balance to a maximum of $50,000. You can only have one standard loan outstanding at a time. Loans need to be repaid within five years, ten years on loans used to purchase a primary residence.

    Disaster Relief Loans

    Those living in a federally declared disaster area may be able to borrow up to 100% of their JRB account balance to a maximum of $100,000. These loans generally need to be repaid in five years. You are permitted to obtain one disaster relief loan regardless of whether you have a standard loan outstanding.

    What Happens If I Can’t Repay My Loan?

    If you are ever in danger of missing a payment, or even if you’ve already missed one, please call the JRB office right away. We’re here to help keep you on track and addressing this issue early offers more options to do so.

    If you fail to repay your loan, the unpaid balance will be deemed a taxable distribution. If you are under age 59 ½, you may also be subject to a 10% early withdrawal penalty.

    Is a loan right for you? Call us at 888-JRB-FREE (572-3733) or set up a Complimentary Financial Consultation.