Loan Calculation

[Guest jetfaninmn]

I came across a brochure from a provider that determines a loan differently from how I was taught. Here are the parameters:

Vested Balance: $60,000

Highest balance in the past 12 months: $6,000

Current Loan Balance: $5,000

I am assuming the vested balance is $55,000 in fund balances and a $5,000 loan balance.

Is the maximum loan amount available $19,000 or $25,000?

[R. Butler]

I get $25,000

For purposes of determining participant's loan limit; outstanding loans are still part of the participants vested balance. Also, the reduction for highest outstanding balance issues are applicable to the $50,000 limit, but not the 50% limit.

[Guest jetfaninmn]

Thanks, and my teacher 10 years ago thanks you!