Deemed loan in MP, does it affect PS loan maximum?

[Guest EBC]

An employer has MP and PS plans. An employee has a loan in the MP plan that is being deemed. He has no loan in the PS plan and wants to take the max. Does the deemed loan in the MP plan affect the PS loan max calculation?

[Richard Anderson]

Yes.

The deemed loan (including accrued interest) is considered an outstanding loan until it is offset. Once you determine the maximum loan amount, you'll then deduct from that any current loan balances (the deemed loan). Whatever is left is the max amount of new loan.

[Guest AFRICA6796]

My 2 cents?

Both plans are part of a 'paired plan' and are considered one form most plan purposes, including loans