City of Milwaukee 457 Deferred Compensation Plan

Frequently Asked Questions

What happens if I default on a loan?

A loan is "in default" if a scheduled payment is not received by the last day of the calendar quarter following the calendar quarter in which the required payment was due. Employees who are on a Company-approved leave of absence may suspend repayments for up to 12 months. Failure to restart the scheduled loan repayments after 12 consecutive months will constitute a loan default. If you default on a loan, the outstanding loan balance will be considered a taxable distribution. You will be subject to ordinary income taxes on the outstanding loan balance.