As a participant in the Stanford Contributory Retirement Plan (SCRP), you may be eligible to take a loan from your account balance held in Fidelity and Vanguard funds. Loans give you the opportunity to borrow from your account balance, and then repay yourself.
You may take out a loan against your account balance in your Tax-Deferred Account and/or Contributory Retirement Account, as long as your funds are with Vanguard or Fidelity. To request a loan you must have a total account balance in these funds of at least $2,000. Fidelity and Vanguard funds are subject to certain rules and restrictions, including those set by the U.S. Internal Revenue Service.
TIAA does not allow loans from their investment options.
Before requesting a hardship distribution under SCRP, you must first apply for all other types of distributions and non-taxable loans currently available to you in SCRP and/or any other plan within the “controlled group” (read about these groups below). The account or annuity contract may impose additional limits.
Before requesting a loan, you should be aware of the general provisions of the loan program:
If you have an account balance in the Stanford Contributory Retirement Plan (SCRP), you are under age 59-½ and are still employed by Stanford, you can only withdraw money from SCRP if you have a financial hardship.
Hardship distributions may be available to:
The amount available for a financial hardship distribution is limited to the lesser of either:
Employer contributions are not eligible for hardship withdrawals.
Stanford is required to follow IRS regulations that mandate the university treat its retirement plans and plans maintained by other Stanford-related employers as belonging to a single “controlled group” for various purposes. This controlled group includes:
Employees who work for any of these organizations will be considered, for certain administrative purposes, to be employed by the same employer: Stanford.
If you have been employed by any of the other entities within the controlled group and have taken a loan that has had an outstanding balance within the last 12 months, it may affect the loan amount available to you. This will be determined during the review of your loan request by Stanford.
Before you request a loan, you can model various loan scenarios on the My Retirement Savings website. To apply for a loan, call 888-793-8733 and speak with a Fidelity representative.
If you request a hardship withdrawal from more than one plan or vendor within the controlled group you must file for each separately and the amount requested from all plans and vendors cannot exceed the amount allowed for financial hardships as defined above.
Neither Stanford nor any plan fiduciary or investment provider will be liable if an administrative plan process (i.e., enrollment, distribution) is materially delayed due to circumstances beyond their reasonable control. This includes, but is not limited to, war, earthquake, fire, flood, hurricane, tornado, pandemic, acts of terrorism and acts of God which could not be avoided by the exercise of due diligence.