A tool designed to estimate the duration an individual must wait before being eligible to apply for a loan from their Empower Retirement account. The waiting period can vary based on plan rules, employment status, and previous loan activity. As an example, a plan might stipulate a 30-day waiting period after enrolling or re-enrolling in the retirement plan before loan eligibility begins. This tool helps users understand these specific requirements.
Understanding the time frame for loan eligibility is beneficial for financial planning. It allows individuals to anticipate when funds might be accessible for planned expenses or unexpected financial needs. Knowledge of this waiting period allows for informed decision-making related to alternative funding sources, preventing potential penalties associated with early retirement withdrawals or relying on high-interest debt. Furthermore, it gives context to the liquidity constraints of retirement accounts.
