Access Control Advantage (ACA) is a retirement savings plan loan solution that allows you to borrow exactly the amount you need, when you need it, and repay it as quickly and easily as possible. Here’s how it works. You apply for an Access Control Advantage line the same way you would for a traditional retirement savings plan loan. But instead of being sent to you in a lump sum check, a loan line is transferred into a money market account that stays within your plan earning tax-deferred dividends until needed. To access your money by withdrawing funds from your loan line, simply use an ACA check or loan card to make purchases anywhere Visa is accepted (it is only when you initiate a transaction that a loan is created.) This way you borrow only what you need when you need it. After taking a loan, you can repay it at any time in any amount as long as the minimum payment is met via electronic payment.
Tips for Using Access Control Advantage
ACA is a new way to manage your retirement savings plan loans, and now that you know how it works, here are some tips for maximizing the benefits of this innovative program.
- Have a specific goal for your loan line funds and stick to it.
Traditionally, participants receive a lump sum. ACA enables you to limit your loan to your immediate need. The less you spend, the lower your minimum payment, and the faster you repay your loan.
- Don’t stop contributing to your retirement plan, it’s the worst thing you can do. We know it’s hard to continue contributing to your retirement savings plan when you’re in a financial bind. But if you use your loan for emergency needs and still budget your contribution as part of your day-to-day finances, you can continue saving and avoid stopping contributions and never restarting them. Inevitably when people feel they must take a plan loan the next thing they do is stop making the regular contributions and it is your worst possible course of action. You are not only reducing your retirement account to the extent of your borrowing but you are permanently throwing away your employer’s contribution and all its future earnings.
- Pay more than the minimum. Traditionally retirement savings plan loans have not encouraged flexible repayment options. With ACA, you can repay at any time in any amount as long as the minimum
payment is maintained.
- Manage your account. From this site you can easily monitor and manage your Access Control Advantage account details, forms and statements and budget accordingly. If you've already signed up for ACA and would like to access your account now, click here and enter your User Name and Password. If you have not yet enrolled for online access, click here.
