Your 403(b) or 457 plan may have a loan provision that allows you to borrow from the balance accumulated in your account. Plan loans, if allowed, are generally limited to 50% of your account balance or a maximum of $50,000, whichever is less, and generally must be paid back within five years with interest. You may or may not be allowed to continue to make contributions to your 403(b) or 457 plan while you are repaying the loan.
Before choosing to take a plan loan, it is wise to consider other options for borrowing. When you borrow from your 403(b) or 457 plan, you may be shortchanging your future. Read more about the downside of taking plan loans here.
Read "Using Credit Wisely"and "Don’t Turn Your Retirement Plan into an Emergency Fund"
Download "Closing the Gap: Supplement Your Pension Benefits with a 403(b) or 457 Plan"
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