How are loan repayments invested?
Loan repayments are invested according to your current investment elections. Loan repayments are returned to the source from which they were distributed. For example, assume you request a loan of $1,000–$500 is borrowed from your employer contribution monies and $500 from your employee contributions. If you are investing all of your current employer contributions in Fund A and all of your current employee contributions in Fund B, 50% of the loan repayment will be invested in Fund A (employer contribution source) and 50% will be invested in Fund B (employee contribution source). If you have no investment elections, the total loan repayment will be plan-directed into the NADART Fund (PDF) with 50% going into the employer contribution source and 50% into the employee contribution source.
