Can You Borrow Against a 403(b) Retirement Plan?


Quick Answer

Providers can offer loans against a 403(b) retirement plan but are not required to, according to the IRS. Participants should contact their plan sponsor or refer to the Summary Plan Description to determine loan options.

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Full Answer

As of 2015, if the provider allows loans participants can borrow against 50 percent of the vested balance up to $50,000 or the full amount vested if the account balance is less than $10,000, explains the IRS. Borrowers must repay the loan within five years unless the loan is applied toward the purchase of a primary residence. Borrowers can have multiple loans, as long as the combined outstanding balance does not exceed the borrowing limits.

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