Maximum Loan Amount

[DTH]

A plan accepted a rolled over loan note from an unrelated plan. The participant wants to take another loan. Do you take into consideration the rolled over loan note when determining the maximum loan amount the participant can take?

IRC 72(p)(2) says ... (A) GENERAL RULE. --Paragraph (1) shall not apply to any loan to the extent that such loan "(when added to the outstanding balance of all other loans from such plan" whether made on, before, or after August 13, 1982), does not exceed the lesser of –

If you take "from such plan" literally, you could make a case I doesn't since the original loan was modeled in a different employer's plan.

Has anyone had any experince with this? Do you have any cites?

Thanks.

[ETA Consulting LLC]

when added to the outstanding balance of all other loans from Thanks.

Good Luck!