NRECA Employee Benefits Weekly

New 401(k) Plan Loan Interest Rate in Effect

Posted on Posted in Retirement Benefits

Effective April 1, 2020, the NRECA-sponsored 401(k) Pension Plan’s loan interest rate, which is set quarterly at 1% more than the nation’s prime interest rate, will be 4.25%.

Things you and your employees should consider about loans
If your cooperative offers a 401(k) Plan loan option, encourage employees to contact you for details on your co-op’s loan program before taking a loan.

Encourage participants who are considering a loan to:

  • Visit NRECA’s Employee Benefits website at cooperative.com > My Benefits > My Retirement > Loans to download a copy of the Borrowing from Your 401(k) Account brochure.
  • Seek guidance from their personal financial or tax advisor.
  • Contact NRECA’s Personal Investment & Retirement Consulting (PIRC) team at 866.673.2299, option 6, or at pirc@nreca.coop.

Model and request loans online
To view the loan interest rate or request a loan, participants can log in to the Employee Benefits website at cooperative.com > My Benefits > My Retirement > Loans. Select Model & Request a Loan.

For questions, contact the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.

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