403(b) Loan Provisions
Please read the following information and instructions carefully, as the requirements for loans have changed.
Effective January 1, 2009, loans are available to active MSU employees from the 403(b) Retirement Plan (including the Base and/or Supplemental). The minimum loan amount is $1,000. Employees may have a maximum of two (2) MSU 403(b) Retirement Plan loans outstanding at one time. An employee who at any time has defaulted on a loan(s) from the MSU Plan (from any investment sponsor) will not be eligible to receive another loan from the Plan, unless the defaulted loan(s) is repaid in full. Fidelity is the only MSU approved investment vendor allowed to issue new loans. If you do not have an account with Fidelity, please review step 4 below for further detail. Loans are only available for specific purposes, which are listed in step 1.
Loan Process Documents:
Step-by-Step Instructions:
1. Complete the MSU 403(b) Retirement Plan Loan Application Form. All sections of the form must be fully completed. (*Note: click here for "family member" definition)
a. Section A - complete your personal information, including your email address.
b. Section B - select the loan purpose(s) that apply. The nine purposes listed on the form are the only available criteria.
- To purchase applicant's principal residence (documentation examples)
- To prevent eviction from or foreclosure on applicant's principal residence (documentation examples)
- To pay for college tuition expenses for applicant or family member* (documentation examples)
- To pay medical expenses for applicant or family member* (documentation examples)
- To pay for funeral expenses for family member* (documentation examples)
- To pay for home repair due to a major disaster to applicant's principal residence (documentation examples)
- To pay applicant's expenses if applicant is unable to cover them due to layoff (documentation examples)
- To support applicant's structured financial plan to eliminate debt and/or avoid bankruptcy (documentation examples)
- To pay for applicant's expenses to adopt a child (documentation examples)
c. Section C - enter the amount of loan
d. Section D - sign, input social security number and date form
2. Attach the appropriate documentation that supports the loan purpose(s) selected and the loan amount requested. Do not send original documents, submit only copies. Documentation will not be returned to the employee.
3. Return the MSU 403(b) Retirement Plan Loan Application Form and supporting documentation to MSU Human Resources Benefits at:
MSU Human Resources Benefits/Retirement Office
1407 S. Harrison Rd
130 Nisbet Building
East Lansing MI 48823
Fax: 517-353-1869
Human Resources Retirement Office will contact you by email within three (3) business days of submission to notify you if your loan application is accepted. If your MSU 403(b) Loan Application Form is incomplete or your supporting documentation is insufficient, your application will not be accepted. Incorrect or incomplete documents will require re-submission by the employee.
4. Contact Fidelity to request your loan. You may request the loan online with Fidelity or by phone with Fidelity's Customer Service at 800-343-0860. The loan amount requested at Fidelity should be equal to or less than the amount identified on your 403(b) Loan Application Form.
Note: If you do not currently have an account at Fidelity, you will need to open an account by transferring a portion of your MSU 403(b) account balance (Base and/or Supplemental) from one of the approved MSU investment sponsors to Fidelity. The amount of the transfer must be at least twice the amount listed on the loan application. Before you transfer the balance, you may want to first review the email that Human Resources Retirement Office sends to notify you if your loan application has been accepted.
Direct Deposit and Loan Repayment with Fidelity require the employee to set-up their bank account information. Fidelity has a fifteen (15) day set-up processing time for new banking information. Fidelity loan(s) will be taken out prorated across both parts of the MSU 403(b) Plan.
5. Fidelity will record your loan request online once their request process has been completed. Human Resources Retirement Office will review the MSU 403(b) Loan Application Form, and will approve or decline your Fidelity loan request via the web. Employees may confirm completion of the loan process by accessing their Fidelity account.
