Citi Benefits Handbook
Plan Loans
The Plan is designed so that your Plan accounts will be distributed to you at retirement or when you leave the Company. However, you may be able to borrow against your Plan accounts while you are working for the Company by taking a loan from the Plan. The basis for granting a loan will be those factors considered by commercial lenders in the business of making similar loans. The Plan Administrator will decide whether to grant the loan based on IRS and Plan rules and its decision will be final. You are required to repay any loan taken from the Plan. When you repay a Plan loan, you repay your account on an after-tax basis with interest.
The minimum loan amount is $1,000. The maximum loan amount is the lesser of:
  • 50% of your vested account balances on the date the loan is made; or
  • $50,000 reduced by the highest outstanding loan balance (if any) in the last 12 months.
The maximum amount available will be determined by considering all of your eligible accounts except for your Money Purchase Plan Account, PAYSOP Account and QVEC Account, if you have such accounts. Loan amounts will be withdrawn pro-rata across all your investment options at the time you take out your loan.
Any money your Employer has contributed since 2017 (for the 2016 Plan year or after) is not available for loan purposes (e.g., Company Matching, Fixed and Transition contributions, plus all earnings). The only money that is available for loans is the money you contribute to your account and any Company Contribution made before 2017.
The Plan permits general purpose and residential loans, both of which have a $50 application fee. This fee is non-refundable and will be deducted from your account balance at the time the loan request is processed. This fee will be used to offset the administrative expenses associated with the loan.
General purpose loans can be repaid over a period of 12 to 60 months.
Residential loans can be used to purchase your principal residence only and may be repaid over a period of 12 to 240 months. Documentation is required for a residential loan.
You may have two loans outstanding at any time, and only one can be a residential loan.
You do not pay income taxes on any money borrowed from the Plan because it is repaid into your Plan account. The interest portion of your payments is not tax-deductible. You may wish to consult a professional tax adviser before borrowing from the Plan.
You can request a loan by visiting the Plan's website or calling the Plan as instructed under "How to Contact the Plan."
Special Loan Requirements for Expats (or Former Expats)
In no event may a participant who is or has been employed as an employee in an expatriate classification in the United Kingdom be granted a loan secured by any amounts attributable to contributions based on compensation earned while employed in the United Kingdom before April 5, 2002.