Employer Administrative Elections - Rules for Loans

The following administrative elections record Washington and Lee University's ("the University") rules regarding loans from its Defined Contribution Plan, effective April 1, 2011. These elections/rules are intended to supplement, but not supersede, the provisions of Section 7.06 of the Basic Plan Document entitled, "Plan Loans" and/or the separate "Plan Participant Loan Program" document.

  • Participants may have only one outstanding loan at a time.
  • The minimum loan amount is $1,000. The maximum loan amount is $50,000. The amount you are eligible to borrow is determined by your account balance. Loans can be taken for any reason.
  • If borrowing from an account with TIAA, 110% of the loan must be must be kept as collateral in the TIAA Traditional Annuity. A Participant's TIAA Traditional Annuity is not decreased by the amount of a loan unless the loan goes into default.
  • Variable rate loans for a maximum term of 5 years. The interest rate shall be a reasonable rate, to be set at the time the loan is made. The reasonable rate of interest shall be established by the Plan Administrator or the applicable investment company, based on the index used by that investment company. The interest rate shall be adjusted from time to time as provided under the terms of the applicable funding vehicle. The term of a loan to be used to acquire a Participant's principal residence may extend to 10 years. The collateral will be 50% of the Participant's vested interest in the Plan.
  • A Participant must obtain the consent of his/her spouse, if any, as required by Section 7.06 of the Basic Plan Document and/or the "Plan Participant Loan Program."
  • Repayment must be made within five years (ten years if the loan is used to acquire a Participant's principal residence) unless loan repayments are suspended under the provisions of Section 7.06 of the Basic Plan Document and/or the "Plan Participant Loan Program."
  • Former employees cannot obtain a loan. They have the right to take a distribution once they have severed employment with the University.
  • Any Participant who defaults on a loan is no longer eligible to request a loan.
  • The individuals at the University who are authorized to approve loans are Mary Main, Kimberly Austin, and Deborah Stoner.
  • TIAA and Fidelity are authorized to administer loans as approved by the University. Participants can obtain more information on loan procedures by contacting the TIAA National Call Center at 1-800-842-2776 or Fidelity at 1-800-343-0860