Why aca

Time for loan processing to evolve

Why Use ACA?

When employee retirement plan loans first became available, there were numerous concerns:


  • For Recordkeepers, loan processing is cumbersome because it is manual and time-consuming, thus increasing workload and creating unprofitable tasks that hinder the Recordkeeper’s ability to focus on business-building initiatives.  Processing a 401k loan, 457 plan loan or a 403b loan demanded a more efficient approach.


  • Plan Sponsors had concerns that traditional loan processing meant higher administrative costs due to inefficient payroll adjustments with a typical manual payroll deduction process. And with traditional loan processing, the entire loan amount leaves the plan immediately, reducing both assets under management and employee savings.


  • The number of Plan Participants requesting loans against their retirement savings is increasing. Today, more than 20% of Plan Participants have a defined contribution loan. This means that, without improvement to the loan processing administration, Recordkeepers and Plan Sponsors will be faced with increased workload, higher administration costs and less time to perform other more important tasks. In addition, Plan Participants will continue to lose out on valuable benefits.


ACA is an innovative, breakthrough solution that benefits everyone – and changes the way retirement loans are processed forever.


ACA’s proven solution for qualified loan processing provides a controlled environment that respects the integrity and importance of saving for retirement through defined contribution plans. This one-of-a-kind solution provides more for Recordkeepers, Plan Sponsors and Plan Participants, including:




  • Plan Participants borrow only the amount needed only, when needed
  • ACA helps eliminate overborrowing—participants typically borrow less with ACA
  • Plan Sponsors can set loan limits below IRC 72(p), if they choose to do so
  • Unused loan line can be quickly reallocated to core investments




  • Loan repayments are not tied to payroll deductions
  • Participants can easily accelerate their loan repayments
  • Many ACA loan repayments are higher than the minimum required
  • Solution reduces operational processing burdens




  • ACA loans can continue beyond the employee/employer relationship—there is no forced repayment in 30 to 90 days
  • ACA allows repayment over the original life of the loan as long as participants maintain their account with your firm and do not roll over to another institution. This translates to asset retention for your firm
For more information, or to begin the easy process of utilizing ACA, please contact:



Bob Wuelfing, President


[email protected]

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