Loan repayment options

If your 401(k) account balance is more than $7000 and you elect to defer payment of your account, you have several options with respect to your outstanding loan(s), as shown in the chart below. If you intend to continue loan payments or to repay your loan in full, it’s important to contact the HPE Retirement Service Center at Fidelity as soon as possible following your termination of employment to avoid your loan being treated as in default.

Payment option	How it works
Repay your loan in full	You can repay your outstanding loan balance in full at any time before the end of the calendar quarter following the calendar quarter in which you first miss a payment. To repay your loan, contact the HPE Retirement Service Center at Fidelity.
Continue to make monthly loan payments	You can continue to make loan payments on a regular basis by electing monthly electronic payments from your bank account. If you choose this option, your loan will be re-amortized for monthly payments, rather than semi-monthly payments. You can request a coupon book to be mailed to your address of record when you leave HPE by calling the HPE Retirement Service Center at Fidelity. If you choose to pay via coupon, you must send a certified check or money order for payment. The address for submitting your payments will be included with the coupon book. To elect continuing monthly loan payments via electronic funds transfer from a bank account, visit the “Loans” section of , or call the HPE Retirement Service Center at Fidelity. In addition to your Social Security number and Fidelity PIN, you’ll need the name of your bank, both your bank account number and bank routing number, and the name of the account from which your payment will be drawn (i.e., checking or savings).
Stop loan payments	If you don’t elect continuing monthly repayments or you fail to repay your outstanding loan balance before the end of the calendar quarter following the calendar quarter in which you first miss a payment, your entire loan will be treated as in default, which means it will be deducted from your account. The taxable portion of a defaulted loan is treated as a taxable distribution in the year your loan defaults. You’ll owe ordinary income taxes, and a 10% early withdrawal penalty tax may apply (as well as any applicable state penalties). The amount of the defaulted loan will be reported to you as taxable income on a Form 1099-R, which you’ll receive in January of the year following the default. This information will also be sent to the IRS.

Payment option

How it works

Repay your loan in full

You can repay your outstanding loan balance in full at any time before the end of the calendar quarter following the calendar quarter in which you first miss a payment. To repay your loan, contact the HPE Retirement Service Center at Fidelity.

Continue to make monthly loan payments

You can continue to make loan payments on a regular basis by electing monthly electronic payments from your bank account. If you choose this option, your loan will be re-amortized for monthly payments, rather than semi-monthly payments.

You can request a coupon book to be mailed to your address of record when you leave HPE by calling the HPE Retirement Service Center at Fidelity. If you choose to pay via coupon, you must send a certified check or money order for payment. The address for submitting your payments will be included with the coupon book.

To elect continuing monthly loan payments via electronic funds transfer from a bank account, visit the “Loans” section of , or call the HPE Retirement Service Center at Fidelity. In addition to your Social Security number and Fidelity PIN, you’ll need the name of your bank, both your bank account number and bank routing number, and the name of the account from which your payment will be drawn (i.e., checking or savings).

Stop loan payments

If you don’t elect continuing monthly repayments or you fail to repay your outstanding loan balance before the end of the calendar quarter following the calendar quarter in which you first miss a payment, your entire loan will be treated as in default, which means it will be deducted from your account. The taxable portion of a defaulted loan is treated as a taxable distribution in the year your loan defaults. You’ll owe ordinary income taxes, and a 10% early withdrawal penalty tax may apply (as well as any applicable state penalties). The amount of the defaulted loan will be reported to you as taxable income on a Form 1099-R, which you’ll receive in January of the year following the default. This information will also be sent to the IRS.