Hello,
I am hoping someone here can kindly help me figure out what’s going on with my 401k. I have a total balance of $1,936, with a vested balance of $1,483. I currently have an outstanding loan balance of $727, which was the highest outstanding loan for this plan of $830. I just paid off a second loan 11 days ago. My statement with an end date of 12/31/2023 reflects a vested balance of $1,702, minus the $830 loan, with a “vested account valance less outstanding loan of $847.” Despite paying back a second very small loan after this of only $52 the beginning of February (please don’t judge- I had some medical things going on with my child) and paid it back nearly two weeks ago, my vested balance has decreased. As of right now, my “vested account balance less outstanding loan” as of April 1st statement is $730. I have ADD and I’m having a really hard time understanding the numbers on the vested balance part. If I paid back my loan, and I’m continuing to make payments on the first loan of $830, why did my vested balance decrease nearly $300? Why could I take a loan out for $52 before but now after paying it back and increasing my contribution percentage and making payments on the $830 loan, but now the vested balance is so low that if I take 50 percent of that $730 and subtract my outstanding balance, I’m in the negative? I assume it is because the rate of return went down? Again, I am kindly asking you not to judge; I am aware taking a loan isn’t a good idea. But an explanation on what causes the vested balance to decrease significantly would be insightful since I can’t seem to easily find any answers by researching. Thank you.
