You can generally borrow up to 50% (or one half) of your vested account balance  or $50,000 whichever is less. Generally, the minimum amount permitted is $1,000.

Your vested account balance is the portion that is non-forfeitable. You are always 100% vested in any elective contributions you have made to the plan, but employer contributions of match or profit sharing may be subject to a vesting schedule.

By taking a loan against your account balance, you are entering into a payroll deduction agreement with your employer to repay your loan.

You usually have a maximum of five years over which to repay the loan.

After completing the online loan application, MGO will communicate to you the approved or denied status of your loan. Participants with approved loans receive paperwork for completion. After submitting completed paperwork, the loan proceeds are released to you. Proof of hardship may be required. If required, it is requested when loan paperwork is provided.

There is a $100 fee for the loan paperwork (loan note and amortization schedule). In addition, there is a $25 per year charge, (per the term of the loan). This is automatically deducted from your account balance at the time loan withdrawal occurs.

The interest payments are made to your account. However, since loan payments are an after tax deduction, the interest you pay back will be taxed again when you withdraw it later.

At termination, you must pay back the balance of the loan. Otherwise, the outstanding principle becomes taxable income. If you are under the age of 59 1/2 at that time, you may also incur a 10% early withdrawal penalty on the amount.