Hello,
This is a complicated question, and I am hoping for some help. I was recently laid off from a company with an outstanding loan balance against my 401k. The 401k, was originally 2 different 401ks that my company merged together. Now, before the merger is when I took the loan. The loan amount was around 16,000 and all from account A. Account B had no loan against it and was worth about 11k at the time of the 401k merge to account C.
Now, when I got account C it started off by saying I had a vested amount of 11k and an outstanding loan of 16k. Over the next year as I paid back the loan and the investments the loan balance the vested balance shifted. Loan balance got smaller and between contributions and earnings my vested balance increased. Now the company is trying to tell me that my vested balance, which it has listed as 18k needs to be offset by the 12k I owe, but that doesn't feel right as all the loan repayments, earnings, and other money that was not involved with the original loan had accumulated to the 18k, and somewhere on the site I saw a spot that said total account balance was 30k. Am I confused? Or are they trying to yank me?
