Hardship amount available after loan

[Guest DTrom]

A Participant deferred a total of $7788.24. The deferral source is currently $4,858.26. The participant took a loan a year ago and has been making payments but now needs a hardship.

The outstanding loan balance is $3,987 and was taken originally from the deferral source.

We are now trying to determine the amount available for hardship.

Is it acceptable to assume that the earnings from the deferral source were loaned out so that all that is remaining are deferral contributions and thus the entire deferral balance is available for hardship?

Should at least the interest that has been paid back to date on the loan be subtracted from the deferral balance to determine the amount available for hardship?

Or should the entire outstanding loan balance be added back to the deferral source, subtract out the salary deferrals made of $7788.24 to determine gain or loss, and limit the hardship to the current deferral balance less the gain or loss?

Help!

[Kirk Maldonado]

Did you try searching this general issue? I'm pretty sure it has been addressed before.

[Guest DTrom]

Yes, and all I saw were questions more to do with the issue of whether or not a hardship was available after loan because of the 50% "security" issue.

So we are beyond that and now seeking some advice on how conservative we need to be with the actual determination of the amount.