Important Update: 403(b) Plan Loan Repayment Change

All employees with an outstanding 403(b) loan have received email notification from Fidelity regarding changes to the 403(b) repayment plan. 

Effective April 2026, loan repayments will no longer be deducted from an employee’s paycheck and instead will be made using Fidelity’s Automated Clearing House (ACH) service, which deducts the repayment from a personal bank account. Loan repayments deducted from a paycheck will end with paychecks issued after April 8, 2026. 

Employees will be able to set up their ACH loan repayments starting April 13, 2026. Please note that if you are paid bi-weekly, your repayment schedule will change from bi-weekly to monthly. If an ACH loan repayment plan is not established, the loan could “default” and be treated as a taxable distribution for the outstanding loan balance. This makes the loan balance subject to income tax and possibly a 10% early withdrawal penalty. A defaulted loan may also impact eligibility to request additional loans. 

To prepare for this change:

• Ensure you have an active bank account that can be used for ACH loan repayments
• Consider how a monthly payment schedule may differ from your current bi-weekly deductions
• Watch for future Fidelity emails and step-by-step instructions to set up your ACH loan repayments

Please call a Fidelity representative at 1-866-682-7787 if you have any questions about this transition or to set up ACH loan repayments.