sarathesmith2

Thank you! I read that example on the IRS website and that's why I was confused. Their examples all talk about a loan that was taken out 8 months ago (so within the last year). I wasn't sure if it was different because this loan was older.

Oh okay thank you. So basically every month I wait the available loan will be higher?

I took out a 401k loan of 20k in 2015. I just repaid the remaining balance of $6700. Does that loan affect the maximum allowable amount because it's old? Or does the balance of that loan at any point in the last 12 months lower the maximum available amount? Can I take 50k or will it be 50k - the balance of that old loan 12 months ago (roughly $10,500). Is the max 50k or 39.5k? Yes, I DO have a vested balance over 100k. Thanks!!!!