Most qualified retirement plans, including pensions, allow employees to borrow against them and then repay the plan with interest, according to Investopedia. One benefit of taking a loan against a retirement account over other types of loans is that interest is repaid directly to the account.Know More
A negative aspect of borrowing against a pension plan is that assets removed from the account are not available for tax-deferred financial growth on the earnings, Investopedia notes. Some retirement plans require that employees stop contributions for a time period after receiving a loan through the plan. Although federal law allows qualified plans to offer loans, plans are not required to offer them. Some plans include restrictions on loans, such as offering them only in hardship situations. Such plans may require that a borrower has no other alternative for securing a loan.Learn more about Financial Planning
In the term SIMPLE IRA, SIMPLE is an acronym for Savings Investment Match Plan For Employees and is used to describe a type of retirement plan designed for businesses with 100 or fewer employees, notes Investopedia. The plans are considered simple because they involve minimal paperwork by administrators.Full Answer >
A Roth 403(b) plan is a retirement plan for certain employees of tax-exempt organizations, public schools and certain ministers that operate as a Roth plan, according to Investopedia. Individuals can contribute salary deferral contributions on an after-tax basis, and the investment money grows tax-deferred and distributions are tax-free.Full Answer >
A thrift savings plan, or TSP, is a retirement savings plan established in 1986 for federal civil service employees, according to Investopedia. The Federal Employee's Retirement System Act of 1986 established this defined-contribution plan to allow federal employees the same sort of savings potential that private sector employees have through 401(k) plans.Full Answer >
The NYCERS Tier 4 plan includes provisions relating to retirement plans, programs, and other benefits offered to New York City employees who become members of the system on and after July 27, 1976. Some of the benefits that members enjoy are access to loans and insurance services. A person's Tier is generally determined by the date of joining NYCERS, notes NYCERS.org.