IQVIA Benefits Handbook
LOANS FOR ACTIVE EMPLOYEES
Loans for active employees are generally available from the Plan for any reason. Call Fidelity Customer Services at 800-835-5097 or go online at www.401k.com to initiate a loan and/or to determine the loan amount available. Taking a loan may cause you to incur both a set-up fee and an annual maintenance fee. Also, depending on the source of the amounts you are borrowing, a spousal waiver may be required before a loan can be granted.
The following rules apply to 401(k) Plan loans:
  • You may borrow from your account the lesser of: (1) $50,000, reduced by your largest outstanding loan balance during the twelve month period prior to the date of the loan; or (2) 50% of your vested account balance. The minimum amount that may be borrowed is $1,000.
  • At the time of your loan, the trustee will notify you of the amount of the loan, the interest rate to be charged and the repayment schedule. You will be charged interest on your loan based on the average rate being offered for similar loans of similar risk by three banks or other commercial lending institutions in the geographical location of your work address. The interest is not tax deductible.
  • You generally cannot have more than two outstanding loans at any one time. (Note: Legacy IMS 401(k) participants with three loans outstanding at the time of the plan merger may continue to have three outstanding loans per the original loan terms in effect as of December 31, 2017. However, such participants must pay off at least two of the outstanding plan loans in order to take out a new plan loan and will thereafter be limited to a maximum of two plan loans.)
  • You have up to five years to repay a general purpose loan.
  • You have up to 15 years to repay a primary residence loan. A primary residence loan requires documentation, such as a purchase agreement.
  • Loan repayments will be made through post-tax payroll deductions and will be deposited in the investment funds of your current contributions.
  • If your loan becomes delinquent and is not brought current within 30 days of written notice, the loan may be considered a taxable distribution under the Plan.
  • Loans are generally available from all accounts other than the QINC Transfer Account.
Prepayment of Loan
You may prepay your outstanding loan in full at any time. Partial loan repayments are not allowed. Call Fidelity Customer Services at 800-835-5097 or go online at www.401k.com to receive more information about prepaying your outstanding loan.
If You Leave the Company with an Outstanding Loan
The rules applying to loans are complex. You should check with a financial advisor or accountant when deciding how to receive a payout from your account.
Generally, if you have a plan loan when you leave the company, you may repay your loan in full at that time.
You also have the option of requesting recurring loan repayments using ACH by setting this up online with Fidelity. Please contact Fidelity Customer Services at 800-835-5097 to request this option.
If your outstanding loan is not paid in full, the amount you (or your beneficiary) receive will be reduced by the amount of the unpaid balance, plus accrued interest. This means you will be responsible for any required taxes or penalties that may be applicable to the unpaid loan balance.