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

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

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.

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.