If you have an immediate financial need created by severe hardship and you lack other reasonably available resources to meet that need, you may be eligible to receive a hardship withdrawal from your voluntary contributions. A hardship may include:
purchase of a principal residence.
college tuition and approved related expenses for you, your spouse or dependents,
non-reimbursable medical and/or dental expenses for you, your spouse or dependents, or
payment to prevent eviction from or foreclosure on your principal residence.
If you feel you are facing financial hardship, you should see your financial professional for more details.
Loans
The plans are intended to help you put aside money for your retirement. However, Franciscan Alliance, Inc. has included a plan feature that enables you to access money from the plans tax free without permanently reducing your account.
The amount the plans may loan to you is limited by rules under tax law. All loans will be limited to the lesser of: 100% of the vested account balance up to $10,000, or 50% of the vested account balance for loans in excess of $10,000, not to exceed $50,000.
Loans may be taken from rollover accounts.
All loans must generally be repaid within five years. A longer term may be available if the loan is to be used to purchase your principal residence.
The minimum loan amount is $1,000.00.
You may have one loan outstanding at a time.
You pay interest back to your account. The interest rate on your loan will be Prime Rate plus 2%.
A $50.00 processing fee for all new loans and a $30.00 per year maintenance fee are charged to your account.
Defaulted loan amounts will be taxed as ordinary income and may incur a 10% federal tax penalty if the employee is under age 59½. Other requirements and limits must be met prior to borrowing money from your accounts. For additional information regarding loans, please see your financial professional.