OneAmerica 401k Loan: Accessing Your Retirement Savings

401(k) loans can be a valuable tool to help you access your retirement savings for unexpected expenses or large purchases. OneAmerica offers a variety of 401(k) loan options, making it easy to find the right loan for your needs.

Benefits of a OneAmerica 401k Loan

• Quick and easy access to your savings: 401(k) loans are typically processed quickly, so you can get the money you need when you need it.
• Competitive interest rates: OneAmerica offers competitive interest rates on its 401(k) loans, so you can save money over the life of your loan.
• No impact on your credit score: 401(k) loans are not reported to credit bureaus, so they will not affect your credit score.

How to Apply for a OneAmerica 401k Loan

To apply for a OneAmerica 401(k) loan, you will need to contact your plan administrator. They will be able to provide you with the necessary forms and instructions.

Eligibility Requirements

To be eligible for a OneAmerica 401(k) loan, you must:

• Be an active participant in the plan
• Have been employed by your employer for at least one year
• Have a vested balance in your account

Loan Limits

The amount of money you can borrow through a OneAmerica 401(k) loan is based on your vested account balance. The maximum amount you can borrow is 50% of your vested account balance, or $50,000, whichever is less.

Repayment Terms

401(k) loans must be repaid within five years. You can make monthly payments through payroll deductions or direct deposits.

Loan Costs

OneAmerica charges a $50 origination fee for 401(k) loans. There is also an annual maintenance fee of $15.

Risks of a OneAmerica 401k Loan

There are some risks associated with taking out a 401(k) loan, including:

• Default: If you default on your loan, you may have to repay the entire loan balance, plus interest and fees.
• Taxes: If you withdraw money from your 401(k) loan before age 59½, you may have to pay income taxes and a 10% early withdrawal penalty.
• Investment risk: The value of your 401(k) account may decline, which could affect the amount of money you can borrow.

Is a OneAmerica 401k Loan Right for You?

401(k) loans can be a valuable tool, but they are not right for everyone. Consider the following factors before taking out a 401(k) loan:

• Your financial situation: Make sure you are in a good financial situation and can afford to repay the loan.
• Your retirement goals: Taking out a 401(k) loan can reduce the amount of money you have available for retirement.
• The risks: Understand the risks associated with 401(k) loans before you apply.

If you are considering a OneAmerica 401(k) loan, talk to your financial advisor to discuss your options.

Alternatives to a OneAmerica 401k Loan

If you are not eligible for a 401(k) loan or you do not want to take on the risks involved, there are other ways to access your retirement savings.

• 401(k) hardship withdrawal: You may be able to withdraw money from your 401(k) account if you have a financial hardship.
• 401(k) rollover: You can roll over your 401(k) account into an IRA, which may give you more investment options.
• Personal loan: You can take out a personal loan from a bank or credit union.

Talk to your financial advisor to discuss which option is right for you.

Conclusion

401(k) loans can be a valuable tool to help you access your retirement savings for unexpected expenses or large purchases. However, it is important to understand the risks involved before you take out a loan. If you are considering a OneAmerica 401(k) loan, talk to your financial advisor to discuss your options.

Additional Resources

• OneAmerica 401(k) Loans
• IRS Publication 575: Pension and Annuity Income
• 401(k) Loans: What You Need to Know