Frequently Asked Questions
Q: Can I take a loan from my account?
A: Provided your Plan allows for loans, you may take a loan on your vested account balance. The minimum loan amount is $1,000.00. The maximum loan amount is 50% of your vested account balance or $50,000.00, whichever is less. For more information, please review your Plan Document or consult your Plan Administrator.
Q: What is the maximum duration of a loan:
A: The maximum duration of a loan is five years. If the loan is to be used to purchase a principal residence, however, the maximum duration is ten years. For more information, please review your Plan Document or consult your Plan Administrator.
Q: What events constitute a financial hardship?
A: A "financial hardship" is one of the following events:
- Buying a principal residence,
- Paying for your or a dependent’s college education,
- Paying certain medical expenses,
- Preventing eviction from or foreclosure on your principal residence,
- Paying for funeral expenses, or
- Paying for qualifying repairs to your principal residence, within tax law limits
Q: If I take a hardship distribution, can I continue to make contributions to the Plan?
A: In the event that you elect to receive a hardship distribution, you may not make elective deferrals or Employee contributions to the Plan for the 6-month period following the date of your hardship distribution. For more information, please review your Plan Document or consult your Plan Administrator.
Q: How do I determine my vested interest in the Plan?
A: Your vested interest in the Plan is determined by your number of Years of Service you have completed. You will have completed a Year of Service for vesting purposes if you are credited with 1,000 Hours of Service during a Plan Year, even if you were not employed on the first or last day of the Plan year. Your vested interest is determined by your Plan’s vesting schedule. To see this schedule, please review your Plan Document or consult your Plan Administrator.
Q: What is the maximum amount that I may contribute to the Plan?
A: The maximum amount you can contribute to the Plan in 2009 is $16,500. If you are over age 50, you can contribute an extra $5,500 for a total of $22,000
Q: What is a Break in Service?
A: A Break in Service occurs if you do not complete more than 500 Hours of Service during a 12-month Plan Year. If you are re-employed after a 1-Year Break in Service, you will receive credit for all Years of Service credited to you before your 1-Year Break in Service.
Q: May I make rollover contributions to the Plan?
A: With the Employer’s consent, you may be permitted to deposit distributions you have received from other plans. Such a deposit is called a "rollover" and may result in tax savings to you. You should consult qualified counsel to determine if a rollover contribution is in your best interest.
