Savings Plus allows you to take a participant loan from your 401(k) and/or 457(b) account(s), based on the loan information and loan eligibility outlined below, provided you agree to repay the outstanding loan balance including accrued interest within the specified period of time. Your Pre-tax and Roth After-tax assets will be utilized in determining the maximum loan amount available by plan, but the funding of the loan will be restricted to your Pre-tax assets only. Since you are borrowing from your account, your loan will not affect your credit rating. You may want to consult with a tax advisor and carefully examine all of your options prior to initiating a loan.

Types of Loans Allowed: General Purpose and Purchase of Primary Residence

Loan Period:
General Purpose: 1-5 years
Primary Residence: 1-15 years
Minimum Plan Balance: $10,000.00
Minimum Loan Amount: $5,000.00

Maximum Number of Loans: One outstanding loan per plan,
not to exceed two outstanding loans across both 401(k) and 457(b) plans.

Maximum Loan Amount The lesser of:

  • 50% of your plan account balance by plan minus your outstanding loan balances from all state-sponsored plans on the date of your loan; or
  • $50,000.00 minus your highest outstanding loan balances from all state-sponsored plans within the last 12 months

Fees: We will deduct a one-time nonrefundable fee of $50.00 from your account upon loan initiation to cover the cost to process and handle your transaction. If you elect to have a check mailed to you, a $2.00 fee will be assessed. If you elect to have your loan check mailed via overnight mail, we will deduct an additional $25.00 from your account.

Interest Rate: The interest rate will be the prime rate plus 1%. The prime rate used will be based upon the rate published in the Wall Street Journal two weeks prior to the end of the most current calendar quarter. The rate will be effective on the first day of the next calendar quarter.

To request a loan, log into your Savings Plus account or contact a Savings Plus Service Center representative. See below for key information regarding loans.

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You qualify for a loan from your 401(k) or 457(b) Plan account if you:

  • Are a current State of California employee
  • Have a balance of at least $10,000.00 in the plan account (401(k) or 457(b)) in which the loan is being requested
  • Do not request more than the Maximum Loan Amount as listed above
  • Do not currently have a defaulted loan
  • Are not a rehired annuitant or a beneficiary or obtained your account through a Qualified Domestic Relations Order


ACH Repayment

Loan repayments are automatically deducted from a savings or checking account you designate with after-tax dollars and invested according to your current investment allocation. Loan repayments will start approximately 30 days from the date of the loan initiation and will continue on or around that date on a monthly basis. These transactions will show up as “Nationwide (Payments)” on your bank statement. If a payment is unable to be processed on the due date due to insufficient funds in your bank account or due to inaccurate banking information, Nationwide will assess a $50.00 fee from your Savings Plus account and will send you written notification. If a monthly ACH loan repayment is missed, the past due payment(s) plus the regularly scheduled repayment will be pulled the following month to bring the loan current. This will occur each month until the time of default.

Loan Payoff

You can repay your loan in full at any time without a prepayment penalty. To do this, you can obtain payoff information by contacting a Savings Plus Service Center representative or obtain a payoff quote by logging into your Savings Plus account and selecting the loans tab.

A Savings Plus Service Center representative will provide you an estimate of your full loan payoff and provide instructions on how to proceed including the amount you owe, the payment address, and due date.

You may make a direct loan repayment if you are going to pay off your loan in full.

Please remit the exact loan repayment amount, using a certified bank check made payable to:

Nationwide Retirement Solutions
Savings Plus, Your Name, Account Number or SSN, Plan Type (401(k) or 457(b))

Mail your repayment to:
Savings Plus Service Center
P.O. Box 182797
Columbus OH 43218-2797

Or overnight your repayment to:
Savings Plus Service Center
3400 Southpark Place, Suite A
Attn: DSPF-F2
Grove City, OH 43123

Self-Directed Brokerage Account

If you have a Personal Choice Retirement Account (PCRA), the amount in your PCRA will be included when calculating your maximum available loan amount. However, you must maintain the lesser of $2,500.00 or 50% of your main plan account balance in your core account. You may be required to transfer some or all of your PCRA balance to your main plan account (401(k) or 457(b)) before the loan is funded.

Loan Modeling

You may borrow from your 401(k) Plan and 457(b) Plan accounts if you are currently employed by the State of California. You do not qualify if you are retired, working as a rehired annuitant, separated from employment, currently have an outstanding defaulted loan, or obtained your account as a beneficiary or through a Qualified Domestic Relations Order.

You have two options to model and initiate a loan request:

Non-Military Leave

If you are on an approved non-military leave of absence without pay, you may be eligible to suspend your loan repayments for up to 12 months while on leave. Call the Savings Plus Service Center for more information.

Military Leave

If you are on military leave, you will be eligible to suspend your loan repayments. While on active duty in the United States military, the interest rate on the loan shall not exceed six percent (6%), compounded annually unless you elect in writing during or after your military leave to have the loan's higher interest rate, if applicable, apply to the loan. For more information on military leave, contact a Savings Plus Service Center representative.

Transferring/Rolling Over loans between plans

You cannot transfer or rollover your Savings Plus loan to another plan and you cannot transfer or rollover a loan from another plan to Savings Plus.

Payroll Deduct to ACH Conversion

If you are actively employed or you have separated service and you have a payroll deduct loan, you have the option to make monthly loan repayments via Direct Debit/ACH from your designated bank account. If your loan is past due, you will be required to make a direct loan repayment to bring your loan current prior to converting to ACH. Additionally, you will be required to complete a Debit ACH Form and sign an acknowledgment that you have read the ACH Loan Fact Sheet to make this change. Please contact the Savings Plus Service Center at (855) 616-4776 to learn more about this option and to obtain the necessary forms.

Deemed Distribution of Loan Balances

If you miss any loan repayments, you will have until the end of the calendar quarter following the calendar quarter in which they were missed to make them up in order to avoid default and a subsequent deemed distribution. If the missed repayments are not made by the end of this period, the outstanding loan balance, including accrued interest, will be considered in default and treated as a taxable deemed distribution. A Form 1099-R will be issued by January 31 of the following year. Once a deemed distribution occurs, you will no longer be able to take another loan in either plan until the existing loan is paid in full. The loan balance will continue to accrue interest until the loan is paid in full or is offset when you separate from service. If the loan is from your 401(k) Plan account, the deemed distribution may be considered an early withdrawal and may be subject to an additional 10% early withdrawal tax. There is no additional 10% early withdrawal tax if the deemed distribution is from your 457(b) Plan account.

Savings Plus Service Center representatives do not give legal or tax advice. Contact your legal or tax advisor for such advice.

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