Loans

Although the Plan is designed for long-term savings, you can borrow from your account. Keep in mind that your paycheck would be reduced to repay the loan with interest, and you could owe taxes and a 10% federal penalty tax if you fail to repay on time or when you leave Union Pacific Corporation. Following are the loan provisions:

• Minimum amount: $1,000.
• Maximum amount: the lesser of 50% of your account balance or $50,000 minus your highest outstanding loan balance during the last 12-month period in this Plan or in any other qualified plan maintained by Union Pacific.
• Maximum annual new loan requests: one.
• Maximum outstanding loans: one.
• Repayment term: up to 59 months for a general purpose loan; up to 180 months for a principal residence loan.
• Application fee (per loan): $35 when applying online or through the interactive VOICE® Network; $85 when applying by phone with personal assistance from a Vanguard associate.
• Maintenance fee: $20 (per year).

To pay off a loan, please contact Vanguard.