11. What if I have a loan on my 457 account?
If you took a loan on your 457 account that is not paid off yet, you have options:
- Continue to pay on it each month by sending Voya Financial a check or through reverse direct deposit.
- Pay the entire remaining balance by sending Voya a check for the payoff amount.
- Pay it off with a distribution from your 457 account. Keep in mind that if you elect to pay the loan off with a distribution from your 401(k) account, you will owe taxes on the distribution, and you may be subject to a 10% IRS penalty for an early withdrawal. Consult with a tax advisor to determine if the 10% penalty will apply to you.