Lincoln Financial Loan Request Form: Limits, Consent, and Processing

To request a loan from Lincoln Financial, you use one of two different forms depending on the product: a retirement plan loan from a 401(k) or 403(b) is submitted through Lincoln’s online participant portal, while a life insurance policy loan uses the Policy/Certificate Loan Agreement (form CS06339). The Lincoln Financial loan request form you need, the information it asks for, and how you submit it all follow from that distinction.

Which Loan Product Applies to You

Lincoln Financial administers two distinct loan products. Retirement plan loans let participants in employer-sponsored 401(k) or 403(b) plans borrow against their vested account balance, governed by federal tax rules under IRC Section 72(p) and, for most private-sector plans, by ERISA. The request runs through Lincoln’s online retirement portal on a paperless workflow.

Life insurance policy loans let policyholders borrow against the accumulated cash value of a permanent life insurance product such as an indexed universal life, variable universal life, or MoneyGuard policy. These are requested using Lincoln Financial’s Policy/Certificate Loan Agreement form (CS06339), a downloadable PDF.

Filling Out the Retirement Plan Loan Request Online

Retirement plan loans are initiated at LincolnFinancial.com/Retirement. The paperless system walks you through the request, collects your electronic signature via DocuSign, and flags any additional documentation your plan requires.1Lincoln Financial Group. Participant Guide Paperless Loans and Withdrawals

  • Sign in to your retirement account, then click “Loan information” under “Important links for my plan.”
  • Click “Loan Request.” Only loan types your plan allows will appear.
  • Confirm your marital status and contact details. If anything is wrong, contact your employer or plan administrator before proceeding.
  • Choose between a general-purpose loan and a residential loan, if your plan offers both. Residential loans require supporting documentation showing the loan is for purchasing a principal residence.
  • Enter the dollar amount you want to borrow. The system should prevent you from exceeding your plan’s limits.
  • Fill in banking details and any remaining fields, then click “Save & Continue.” You can pause and return later.
  • Review the completed request and click “Submit.” A DocuSign email will follow so you can electronically authorize the loan agreement.

The system will prompt you to upload additional documents if your plan requires them, such as a purchase agreement for a residential loan or spousal consent.

Filling Out the Policy/Certificate Loan Agreement (Form CS06339)

If you hold a permanent life insurance policy and want to borrow against its cash value, download form CS06339 from Lincoln Financial’s website or request it through your agent. The form applies to products like MoneyGuard, indexed universal life, and variable universal life policies.2Lincoln Financial Group. Policy/Certificate Loan Agreement

You will need:

  • Your full legal name and Social Security number (or Tax Identification Number for trusts and business entities).
  • Your policy or certificate number, which appears on your quarterly statements and policy documents.
  • A completed IRS Form W-9, which may be required alongside the loan agreement, particularly for entities and trusts.
  • A voided check to receive funds electronically. The check must show a printed name, address, bank routing number, account number, and check number that matches the named policy owner. Without this verification, Lincoln Financial may issue a physical check to your address on file instead.

Some indexed universal life products let you choose between fixed, participating, or indexed loan types on the form. Each affects how interest is credited on the borrowed portion of your cash value.2Lincoln Financial Group. Policy/Certificate Loan Agreement

Submitting the Form

Retirement plan loans submitted through the online portal are handled electronically from start to finish. There is no separate submission step beyond clicking “Submit” and completing the DocuSign authorization.

For a life insurance policy loan on paper, you have several options:

  • Upload the completed form through the secure message center on the Lincoln Financial participant portal. This generates a confirmation number as proof of delivery.
  • Fax the form to the retirement services number printed on the form itself.
  • Mail it to Lincoln Financial’s processing center. If the form includes a notarized signature or other original documents, mailing may be necessary. Certified mail gives you a delivery receipt.

Send the form to Lincoln’s centralized processing team rather than a local agent, which can add delays.

Borrowing Limits to Know Before You Enter an Amount

IRC Section 72(p)(2)(A) caps the amount you can borrow from a retirement plan. The maximum is the lesser of:

  • $50,000, reduced by the difference between your highest outstanding loan balance during the twelve months before the new loan and your current outstanding loan balance on the day the new loan is made. If you had a $20,000 loan balance at its peak during that period and have since paid it down to $5,000, your ceiling drops to $35,000.
  • The greater of 50% of your vested accrued benefit or $10,000. The $10,000 floor keeps participants with small balances from being locked out entirely, though your plan document may impose stricter limits.

These limits apply across all plans maintained by the same employer or controlled group of employers, not per plan.3Office of the Law Revision Counsel. 26 USC 72 – Annuities; Certain Proceeds of Endowment and Life Insurance Contracts If your plan permits multiple outstanding loans, each must meet the repayment and amortization requirements on its own, and the combined balance must stay within the same limit.4Internal Revenue Service. Borrowing Limits for Participants With Multiple Plan Loans

A general-purpose retirement plan loan must be repaid within five years, in substantially level installments at least quarterly, usually through payroll deductions. Loans used to buy a principal residence can extend beyond five years if your plan documents the purpose.5Internal Revenue Service. 401(k) Plan Fix-It Guide – Participant Loans Don’t Conform to the Requirements of the Plan Document and IRC Section 72(p)

Spousal Consent

If your plan is subject to the joint and survivor annuity rules under IRC Section 417, your spouse must provide written consent before you can use your accrued benefit as collateral. The consent must be signed within the 90-day period ending on the date the loan is secured.6Internal Revenue Service. Spousal Consent Period to Use an Accrued Benefit as Security for Loans

The signature must be witnessed by either a notary public or a plan representative, with the spouse physically present when signing. Not every plan type triggers this requirement; many 401(k) plans that do not offer annuity distribution options are exempt. If your plan does require it, the online system will flag the requirement during the request and prompt you to upload the signed document. Notary fees for a single acknowledgment typically run between $2 and $15 depending on your state.

Processing Time, Fees, and How You Get the Money

Lincoln Financial’s published turnaround goal for life insurance policy loans is five business days from receipt of a complete application. Retirement plan loan processing times vary by employer plan but generally fall within a similar window. During this period, the administrator verifies your vested balance and confirms the request complies with your plan’s terms.7Lincoln Financial Group. Life Customer Service Turn Around Time Goals

Many plans charge a processing fee deducted from your loan proceeds. Lincoln Financial’s own employee 401(k) plan, for example, charges $50 per loan.8Lincoln Financial Group. Supplement on Plan Loans LNC Employees’ 401(k) Savings Plan Your plan’s fee may differ; check your summary plan description or call Lincoln Financial’s retirement customer service line before you submit.

Funds sent by electronic transfer typically appear within a few business days after approval. If there are banking discrepancies or you did not provide verified banking information, Lincoln Financial will mail a physical check to the address on file, which takes longer.

What Happens If You Leave Your Job or Miss Payments

An outstanding retirement plan loan can complicate a job change. When you separate from service, most plans require immediate repayment of the remaining loan balance. If you cannot repay, the plan reduces your account balance by the unpaid amount, a transaction called a plan loan offset, treated as an actual distribution for tax purposes.9Internal Revenue Service. Plan Loan Offsets You can roll that offset amount into an IRA or another eligible retirement plan by the due date (including extensions) of your federal income tax return for the year the offset occurs.10Internal Revenue Service. 11Internal Revenue Service. Plan Loan Failures and Deemed Distributions Keeping payments on schedule through payroll deductions is the simplest way to avoid the problem.