According to a press release, the ReservePlus Retirement Plan Loan Program allows employees to decide how much money they want available for loans. Until an employee needs the money, the amount stays invested in the retirement plan in a money market fund.
The company claims this will benefit plan sponsors by increasing plan participation and contribution rates among employees, because they know they have instant access to their money when they need it. The company also says the solution will decrease loan administration costs for recordkeepers.
To access the money, the employees use the ReservePlus Loan Card, similar to a debit card, at ATMs and merchants. The employees can also initiate a loan using ReservePlus checks.
According to the company, ReservePlus enables employees to:
- Limit their loan amount to their exact need;
- Accelerate repayment when they choose;
- Help avoid taxes and penalties if they change jobs; and
- Increase their contributions as a result of increased confidence to access their money.
The parent company, The Reserve, offers financial products including mutual funds, banking products and FDIC-insured deposit accounts.
For more information visit http://www.reservesolutions.com/index.htm.