Dumb loan question

[FJR]

How are people administering loans with the following:

Max. loan amount = 1/2 the vested interest up to 50K. Participant has the following sources.

401(k) = 40K

Match = 10K

Profit Sharing = 20k

Can all 35K come out of the 401(k) source or do you have to administer it accross all sources?

Thanks.

[Brenda Wren]

It is much easier to administer if you take from the fully vested account first, i.e. deferral.

[austin3515]

One source ALWAYS unless it absolutely cannot be avoided! No, it does not have to be accross all sources. I always look at the plan to see which makes the most sense. Certainly fully vested comes first.