Plan Loan Limits (Refinancing): Definition of Vested Balance

[Guest chris4013]

I have an account with 50k in it. 40k invested and 10k is loan #1. We want to re-fi. Let's assume that Loan 1 will be repaid according to it's original schedule in the re-fi.

Is the maximum re-fi loan 20k or 25k?

[FundeK]

What is the vested percent of the account balance?

Let's assume that Loan 1 will be repaid according to it's original schedule in the re-fi.

So, you want to take out an additional sum of money, add it to your current loan balance, and keep the original payoff date?

[Guest chris4013]

I was able to find that the 1st loan balance is included in the vested amount. Thank you for your reply.

The first loan would ae been paid off by it's due date. The account is 100% vested.

[FundeK]

If you do not extend the terms of the original loan, you do not have to consider the replaced loan (old loan) and the replacement loan (new loan) to be outstanding at the same time. So, based on a $50,000 account balance, and a $10,000 outstanding loan balance, you could take an additional $15,000 to bring your total outstanding balance to $25,000 which is 50% of your vested account balance.

If you extend the payoff date of the original loan beyond 5 years, you would have a different calculation to do.

[Harwood]

Isn't the original question asking if the loan balance is considered part of the vested balance?

[FundeK]

Isn't the original question asking if the loan balance is considered part of the vested balance?

Probably, I think I am little slow today. For some reason, I took the

Is the maximum re-fi loan 20k or 25k?

to mean that he wanted to add funds to the current loan balance.