Loans from pension plan

[Gary]

Say a participant rolls $150,000 from a 401(k) plan into a DBPP and the present value of his pension plan (excluding rollover) accrued benefit is $50,000.

What are the loan limits in this case?

Is it the maximum plan limit of $50,000 in total?

Or is it $25,000 (50% of pension value) plus the entire $150,000 rollover?

Or something else?

Thanks.

[mwyatt]

50k from a statutory perspective, but you have to check to see what the document says in case more restrictive as to what is available for loans.

[could be me maybe not]

Unless of course he is schizophrenic and can be judged by a special blue ribbon panel of physicians (who otherwise specialize in certifying municipal disability pensions) to in fact be two or three separate persons in which case each may perhaps up to get $50K.