Account balance definition for loans

[Guest Lawrence_Groves]

What is the definition of the account balance for loans. Section 72 dosesn't define. Does the account balance available include outstanding loans?If a participant's account balance is $26,000 including an outstanding loan of $13,000, what is the account balance for a new loan? $26,000 or $13,000?

[FundeK]

Is this the same question you posed in the Distributions and Loans forum? IF so, it is not the exact same scenario.

If a participant's account balance is $26,000 including an outstanding loan of $13,000, what is the account balance for a new loan? $26,000 or $13,000?

If the participant's $26,000 account balance includes the $13,000 loan, she can not take any additional funds as she already has 50% of her account balance in outstanding loans. See the Distribution and Loan forum response for further clarification.