MBA 403(b)
403(b) Loans
In 2001, AG Financial Solutions elected to make 403(b) Retirement Plan loans and hardship distributions available to members having sufficient funds.
The requested loan amount cannot be less than $2,500. In addition, the amount borrowed cannot exceed the lesser of:
- 100% of the total vested account balance if less than $10,000
- 50% of the total vested account balances, or
- $50,000
AG Financial Solutions allows participants to have no more than two loans at a time. The interest rate for Plan loans is fixed for the life of the loan at 1% above the rate of MBA's Income Fund. All loan payments are made by automatic bank draft on the 10th or 20th of each month. Consolidation of loans are allowed. The maximum term of a loan is 60 months (5 years) regardless of intended use.
Due to regulations issued by the U.S. Department of the Treasury, all 403(b) plan loans issued after December 31, 2008 require that your employer must certify meeting limits unless both of the following conditions are met:
- Your employer has an exclusive service provider agreement with MBA, AND
The employer has verified one of the following:
- There has been no other service provider since 2004, OR
- Former service providers have verified past loan activity
- Employer verification is determined by the distribution date and not by the application date or postmark date.
Please feel free to contact us if you have any questions, call 1.800.622.7526 or e-mail
For a detailed discussion of the 403(b) Loan Program, please download the plan document.
