How Many Loans Can You Have With Fidelity 401k

Fidelity 401(k) plans allow participants to take out loans to cover financial emergencies or other needs. The number of loans you can have at any one time will depend on the terms of your plan. Some plans may allow you to have multiple loans outstanding, while others may limit you to just one loan at a time. It’s important to check with your plan administrator to determine the specific rules and regulations regarding loans. Additionally, there may be limits on the total amount you can borrow, as well as repayment terms and interest rates. It’s crucial to carefully consider your financial situation and the potential impact of taking out a loan from your 401(k) before making a decision.

401k Loan Limit

The maximum amount you can borrow from your Fidelity 401k is typically limited to 50% of your vested account balance, up to a maximum of $50,000. However, some plans may have lower loan limits or different rules.

  • You can have only one outstanding loan at a time.
  • The minimum loan amount is $1,000.
  • The maximum repayment period is 5 years for loans up to $10,000 and 10 years for loans over $10,000.

    Fidelity Loan Restrictions

    Fidelity’s 401(k) plan allows participants to take out loans to cover certain expenses. However, there are limits on the number and amount of loans that can be taken out.

    • Loan Limits: Participants can have up to two outstanding loans at any time, with a maximum total loan amount of $50,000. One of the loans can be a hardship loan, which has less restrictive repayment terms.
    • Hardship Loans: Hardship loans can be taken out for specific financial emergencies, such as medical expenses, tuition costs, or home repairs. The maximum amount of a hardship loan is $10,000, and it must be repaid within 15 years.
    • Regular Loans: Regular loans can be taken out for any purpose. The maximum amount of a regular loan is $50,000, and it must be repaid within five years.

    It’s important to note that taking out a loan from your 401(k) can have tax implications. If the loan is not repaid, the outstanding balance will be taxed as income when you retire or withdraw the funds.

    Loan TypeMaximum AmountRepayment Term
    Hardship Loan$10,00015 years
    Regular Loan$50,0005 years

    Multiple Loans from Fidelity

    Fidelity allows you to have up to two active loans from your 401(k). This includes regular loans and hardship withdrawals. You can apply for a second loan once you have repaid at least half of your outstanding balance on your first loan. However, you cannot take out a second loan if you have previously defaulted on a Fidelity loan.

    • You can have up to two active loans from Fidelity at any given time.
    • You can apply for a second loan once you have repaid at least half of your outstanding balance on your first loan.
    • You cannot take out a second loan if you have previously defaulted on a Fidelity loan.
    Type of LoanMaximum Number of Loans
    Regular Loan1
    Hardship Withdrawal1

    Alternatives to 401k Loans

    If you need to borrow money, a 401k loan may not be the best option. There are other alternatives that may be more suitable, such as:

    • Personal loan
    • Home equity loan
    • 401k hardship withdrawal

    It is important to compare the interest rates, fees, and repayment terms of different loan options before making a decision.

    Hey there, thanks for hanging in there with me as we explored the world of Fidelity 401k loans. I hope you found the answers you were looking for. Remember, this is just a general overview, and everyone’s situation is different. If you’re still not sure about the number of loans you can take out, reach out to Fidelity directly or consult with a financial advisor who can provide personalized guidance. In the meantime, stay tuned for more 401k and retirement savings tidbits. See you around!