If you are leaving your company, you will need to confirm what you would like to do with your outstanding loan balance before distributing your remaining account balance.
- You can pay off the loan in full no later than 90 days from your dismissal date with the company and avoid a taxable distribution. Be sure to contact our participant support team to request an exact outstanding balance and inform our team once the check is mailed out.
Check Payable Details: BTC for GDL [Your Guideline Account Number] FBO [Your Name]
Check memo line: Loan repayment
Where to mail the check:
Benefit Trust Company
PO Box 12765
Overland Park KS, 66282
- You can have the total outstanding balance treated as a taxable distribution to you. If you have a loan balance after 90 days of being dismissed, your loan will automatically be considered defaulted. The amount of your outstanding balance will be reported on a 1099-R as a taxable distribution and may be subject to early withdrawal tax penalty if you are under the age of 59 ½.
- If you have found a new employment and assuming your new company’s plan accepts loan rollovers, you may be able to rollover the loan directly to your new employer’s plan.