Available Loan Amount with Multiple Loans

[Guest ROB VIDOVICH]

I have a plan which allows multiple loans.. Participants vested account balance is in excess of $100,000.00. Participant on June 3, 2003 has requested an additional loan.. Therefore, in order not to exceed the $50,000.00 maximum, the highest outstanding balances will they apply as of June 2, 2002?????? If so, loan# 1 was taken as of December 21, 2001 and the outstanding loan balance as of June 2, 2002 was $16,000.00. The second loan# 2 was taken on June 19, 2002 for the amount of $29,300.00.

Since Loan# 2 was taken on June 19th, will I have to include this in the calculation for the new amount available???? As of June 2003, Loan# 2 is the only loan outstanding.

Please let me know as soon as possible... Thanks.....

[WDIK]

The reduced is based on the highest outstanding balance during the one-year period, which appears to be June 19, 2002.

[Guest ROB VIDOVICH]

So you are saying I have to look at the whole year for the outstanding Loan balances during from June 2, 2002 through June 2, 2003??? If Loan# 1 had an outstanding loan balance as of June 2, 2002 of $16,000.00 but then was paid off as of August 2002, would I still have to include this in the calculation or just Loan# 2 taken on June 19, 2002 for $29,300.00?????

[QDROphile]

That is what WDIK is saying. You look at the highest aggregate outstanding balance within the year. $45,300 in your example unless some more of the June 2 balance had been paid before June 19.