MMC Benefits Handbook
Loan Repayment Summary
The repayment terms for paying a loan from your MMA 401(k) Savings & Investment Plan account are listed below.
  • Loan repayments, including principal and interest, begin on the next available payroll period depending upon when you applied for the loan.
  • You repay your loan through payroll deductions. Your loan repayments, including principal and interest, are credited directly to your Plan account.
  • If you are on an unpaid leave of absence, on long term disability, or transfer to a non-participating company, you must repay the loan during the period of your absence or with a non-participating company with a certified check or money order or via direct debit from a checking or savings account. (Special rules may apply if you go on military leave). Once you are on an unpaid leave of absence on Long Term Disability or transfer to a non-participating Company, you will receive a loan coupon book for the life of the loan. You will need to submit a repayment each month along with the loan coupon. However, you can sign up on Transamerica's website for repayments to be made via Automated Clearing House (ACH).
  • You can repay your entire outstanding loan balance in full without penalty at any time via Automated Clearing House (ACH) or with a single certified check or money order.
  • You cannot make partial payments toward paying off your loan.
  • If you terminate employment with an outstanding loan balance, any outstanding loan balance that is not repaid will be in default. You may voluntarily pay off the entire unpaid principal balance of the loan, and all interest owing thereon, either: (i) in the form of a lump sum payment upon your termination of employment in a single certified check or money order or (ii) in periodic payments, via Automated Clearing House (ACH), with such periodic payments to be made in accordance with the current loan repayment schedule and completed no later than the original due date of the loan. Alternative (ii) is available only if you leave your entire account balance in the Plan during the repayment period. The Internal Revenue Service requires that a default be declared no later than the last business day of the calendar quarter following the calendar quarter in which your first missed payment was due. If you do not repay your loan(s), the outstanding loan balance, plus accrued interest, may be treated as a taxable distribution from your account reducing your vested account balance by the outstanding loan amount with the outstanding loan amount (plus accrued interest) being subject to income tax including an additional 10% Federal early withdrawal tax if you are under age 59-1/2 unless an Internal Revenue Service exception applies to you.
To view your loan payments, go to Colleague Connect ( Select Pay & Benefits, and click My Pay & Benefits, select Transamerica under Savings & Financial Planning.