Rollover amount in Loan calculation

[Guest isg2013]

Hello,

Can the max loan (50% of vested acct balance) take into account rollover amounts?

ex. --vested balance in the plan is $10000 and the participant has a rollover amount of $10000 and wants to take a $10,000 loan.

I'm ignoring the ability to w/d rollover funds before age 59.5 in the plan doc. I fthe plan doc had a age limit for in-service dist even for rollovers would that change the answer?

Thanks

[BG5150]

As long as R/O is not a restricted source for loans per the document/loan procedures, then I don't see why not. It's part of the vested account balance.

Loans are not like hardships. The availability of other withdrawals in the plan does not matter.

[masteff]

I'd already started to look the code cites before BG's answer above that I agree with, so here it is...

72(p) says in part: "one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan"

411(a)(7) (which defines "accrued benefit") says in part: "in the case of a plan which is not a defined benefit plan, the balance of the employee’s account"

[Guest isg2013]

great, thanks