If your plan does allow loans, the following rules apply in order to avoid having a loan treated as a taxable distribution to the employee:

• The loan must be repaid within five years, unless used to acquire a primary residence.
• The loan must be repaid in substantially equal amounts, with payments at least quarterly.
• The loan cannot exceed $50,000 or 50 percent of the vested accumulation.

Note: Under federal law, if you have had a loan outstanding from one of your employer's retirement plans during the previous 12 months, the maximum loan amount outstanding during the period must generally be subtracted from the amount currently available for new loans.

Your institution or applicable contract can place additional restrictions on the amount of the loan, e.g., by limiting it to employee contributions or to a percentage of the accumulation. But no restrictions can be placed on the purpose of the loan, e.g., allowing a loan to purchase a primary residence but disallowing one to purchase a car.

If your institution allows for loans, then employees can log in to the Secure Web Center to apply on-line. They'll be able to see which of their plans/contracts offer loans and how much they can borrow.

Go to How Does an Employee "take a Loan" for details.

• Read Building Your Portfolio with TIAA-CREF • Read Facts About Transfer Payout Annuities • Read Reviewing Your Options: A guide to assist spouse beneficiaries • Read Reviewing Your Options: A guide to help you make the right decisions (non-spouse beneficiaries		• Read TIAA-CREF Group SRA Loans • Read TIAA-CREF Retirement Plan Loans • Read TIAA-CREF Retirement Plan Loans and Your SRA • Read 2005 Tax Guide • Read Your Financial Organizer