Why Retirement Loan Eraser?
Retirement Loan Eraser
An automated, low-cost retirement solution that protects against 401(k) loan defaults
Retirement plans help employees save enough money for a comfortable retirement. Retirement loan eraser improves the retirement readiness of plan participants by repaying plan loans when employees are unable to do so after losing their jobs.
Preventing loan defaults also helps plan sponsors meet their responsibility to monitor plan loan performance and reduces the risk of a poor audit finding.
Retirement plan loans give many employees the confidence to keep contributing to the plan, knowing they can access their account in an emergency. Retirement loan eraser gives them peace of mind when they do borrow, knowing their retirement is not at risk.
Plan sponsors can add Retirement loan eraser by simply updating their loan policy and making loan information available to Custodia. Custodia works alongside the plan and its administrator to put coverage in place, communicates with employees and assumes responsibility for loan payments when employees are unable to.