Pioneer Investments: What You Should Know about Uni-K Loans

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What You Should Know about Uni-K Loans

When can I borrow from my account?

You may request a loan at any time as long as you have funds available that have been in your account for more than 10 days and there are no other loans outstanding.

How much can I borrow?

You can borrow up to the lesser of $50,000 or one-half of your Pioneer Uni-K account balance. These limits will be reduced if you have had a loan outstanding against your Uni-K account or any other plans during the prior 12 months. A previously deemed loan will also reduce the available loan amount. (Please refer to the Terms and Conditions, available here, for more details.) The minimum permissible loan is $1,000.

How do I apply for a loan?

Simply complete the Loan Application and send it to:

Pioneer Funds
P.O. Box 55150
Boston, MA 02205-5150

Overnight Address:
Pioneer Funds
30 Dan Road
Canton, MA 02021-2809

What is the interest rate on the loan?

The interest rate will generally be the prime rate published in The Wall Street Journal on the business day prior to the loan's approval. The interest rate will be fixed for the duration of the loan.

What is the fee associated with taking a loan?

There is a $25 loan administration fee. Pioneer will automatically deduct the $25 from your Uni-K account.

How much time do I have to repay the loan?

You must repay your loan in equal monthly installments over no more than a five-year period, unless the loan is used to acquire a principal residence, in which case the loan duration period can be up to 10 years.

When do my repayments begin?

Your first monthly payment is not due until at least 28 days after the distribution of your loan. You can repay your loan balance at any time without a penalty.

How do I repay my loan?

Loan repayments are made electronically, directly from your bank account. The minimum loan repayment amount is $50.

What happens if I miss a payment?

Upon failure to make a payment by its due date, your loan is automatically in default.

What happens after my loan has defaulted?

If you do not cure the default by submitting payment within 90 days of the payment due date, Pioneer will report the default to the IRS on Form 1099-R, reporting the entire outstanding balance of the loan as a taxable "deemed" distribution, subject to any applicable penalties. Once reported, the defaulted loan balance will further reduce any amounts available for future loans.

What happens to my loan repayment if I have exchanged into a different Pioneer fund?

Unless you instruct otherwise, your loan repayments will be reinvested in the same funds that you have selected for your future contributions.

How often will I receive an account statement?

Pioneer will automatically send you a quarterly account statement detailing all activity in your Uni-K account.

How long will it take to receive my loan proceeds?

Loan proceeds will be deposited directly into your bank account via ACH after your promissory note is received in good order. Please note that funds must be available in your account for 10 days prior to the disbursement.

How will I know how much to repay each month?

After returning the completed Promissory Note to Pioneer, you will receive your amortization schedule outlining all of the loan information, including your monthly payment amount. Both the loan disbursement and subsequent repayments will be made electronically to and from your bank account.

If I have a Uni-K loan outstanding, are there any limitations on withdrawals?

Yes. Before you (or your beneficiary) can receive any distributions from the Uni-K Plan (including a transfer of assets to a new trustee), the entire unpaid balance of the loan must first be satisfied.

Who can answer my questions about the loan program?

Talk to your investment representative, or call Pioneer's Retirement Employer Sponsored Plan line at 1-866-622-7815.

This material is not intended to replace the advice of a qualified attorney tax advisor, investment professional or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor.


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