Member Loans
The Board of Trustees of the Benefits Board has approved an amendment to the Ministers’ Retirement Plan to allow participants in the plan to borrow against their retirement accounts. In general, the loan program follows the basic guidelines established by the Internal Revenue Service for such programs. The minimum loan amount is $1,000 while the maximum loan can not exceed $50,000 or one-half of the participant’s account balance, whichever is less. In addition, the loan must be repaid by monthly bank drafts within five years. An application fee of $100 will be charged to all applicants. Those drawing out of their accounts by installment payments are not allowed to apply for a loan.
The interest rate for Member loans will be fixed for the life of the loan at the rate approved by the Board of Trustees of the Benefits Board and in effect at the time the loan is approved. Any interest collected above and beyond the amount stated by the Board to be returned to the participant’s account will be used by the Benefits Board to cover the expenses of administering the loan program.
Additional details on the loan program are available in the documents below. While a Member loan will not be a wise financial move for some participants, for others it will eliminate the need for a hardship withdrawal and the tax consequences that comes with such a move.
To obtain more information about the Member loan program and to get the current rate, you may contact our office at 423-478-7131 or by calling the toll-free number at 877-478-7190.
