From the loan page...
“When you leave your job
indefinitely, your loan typically becomes due and payable. If you cannot repay the loan within the required time period, it is assessed as an early withdrawal subject to income tax and penalties. Contact Participant Services at 1-800-724-7526 immediately after leaving your job for instructions on paying off your retirement plan account’s outstanding balance. Representatives are available from 7:00 a.m. to 11:00 p.m. ET, Monday through Friday.”
The the word indefinitely in the first sentence seems critical to your answer and may be worth a call if your interested. You’ll still have to make the monthly payments though. And any money you have in there is going to be down a LOT at this point unless it was a money market acct or something. If you borrow it now you’ll likely be selling at a huge loss. I guess it depends on how bad you need cash. perhaps look at a refinance cash out option (rates are low) if you have the a home with equity before using your PRAP at this point. Good luck!
Originally Posted by
Yermom
Since this thread has touched on monetary issues, I have a questions about our PRAP. This is a hypothetical, worst-case scenario, so please understand I'm not running to the bank as I type this. Just wondering if it's even possible to tap into PRAP retirement savings? I understand all the penalties and implications of early withdrawal. I just don't know if the PRAP is different than a standard 401K, and if we do, or do not, have the ability to make early withdrawals. Thanks to anyone who responds.
Yermom