NRECA Employee Benefits Weekly

New 401(k) Plan Loan Interest Rate in Effect

Posted on Posted in Retirement Benefits

Effective January 1, 2025, the 401(k) Pension Plan’s loan interest rate, which is set quarterly at 1% more than the nation’s prime interest rate, decreased to 8.5%.

Things you and your employees should consider about loans
If your cooperative offers the 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. They can then click on Model & Request a New Loan.

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

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