Expert: Allen - 12/6/2008

Question
Someone mentioned that us union carpenters may borrow or get pension money early to purchase a home (or as a down payment for a home). Could you explain this to me. I cannot find anything about it in any capenters union websites. Thanks

Answer
Some pension plans allow a participant to borrow from the plan. If the value of your benefit is $100,000 or more AND YOUR PLAN ALLOWS YOU TO BORROW, then you can borrow up to $50,000. If the value of your benefit is less than $100,000 AND YOUR PLAN ALLOWS YOU TO BORROW, you can borrow up to 50% of the value of your benefit. Check with the Plan Administrator to see if your plan has aloan provision.