MMC Benefits Handbook
Available Loan Amounts
There are legal limits, plan limits and restrictions that apply to the amount you may borrow from your account and the number of loans you may have as outstanding. You can borrow only up to 50% of your vested account balance but no more than $50,000. Loans outstanding over the prior 12 months will be added back to determine if the $50,000 limit is exceeded.
A loan that is deemed distributed due to the failure to meet the loan repayment schedule will be treated as an outstanding loan when determining the number of loans outstanding and the amount available for a loan. This can restrict your ability to take another loan in the future.
For purposes of determining your vested account balance, the Plan will also take into account your vested account balance in the Marsh & McLennan Companies 401(k) Savings & Investment Plan.
A participant can have a maximum of 2 loans from all tax-qualified plans of companies in the Marsh McLennan controlled group (including MMA) outstanding at the same time. If you have an outstanding loan from the Marsh & McLennan Companies 401(k) Savings & Investment Plan, you cannot take out a loan from the Plan until the Marsh & McLennan Companies 401(k) Savings & Investment Plan loan is paid off.
How Loan Is Taken from Account
Distribution of proceeds of your loan will be charged pro rata from funds in which your available vested account balance are invested under the Plan. The basic hierarchy for money types used to take a loan is as follows:
- before-tax contributions
- rollover contributions (excluding Roth rollover contributions and earnings)
- MHRS Plan Account***
- Special Company Contributions
- Safe Harbor Match***
- CSI ER ESOP Merge***
- profit sharing prior plan contributions***
- Company matching contributions
- prior plan company matching contributions***
- performance-based Company matching contributions***
- after-tax contributions
- Additional Company Matching Contributions (if any) *, ***
* Additional Company Matching Contributions are the 28-1/3% match made prior to January 1, 2006 in the Marsh & McLennan Companies 401(k) Savings & Investment Plan to participants who met certain age and Plan participation requirements.
*, ***These accounts may pertain to employees that transferred along with their Marsh & McLennan Companies 401(k) Savings & Investment Plan accounts from Marsh McLennan to MMA.
If you have any Roth 401(k) contributions and earnings, Roth rollover contributions and earnings, Roth catch-up contributions and earnings, in-plan Roth conversion accounts in the Plan or MMC fixed company contributions transferred from the Marsh & McLennan Companies 401(k) Savings & Investment Plan, these amounts will be applied as collateral for a loan but will not be a source of funds for the loan.
Minimum Loan Amount
The minimum loan amount is $1,000.