Participant Loans

All of the guidance on the IRS website refers to "50% of the participant's vested account balance" when calculating the amount available for a participant loan.  When you are calculating the amount available for a second loan with a first loan outstanding, do you include the outstanding balance of the first loan in the "vested account balance"?  It appears from the example in the EOB that you should include the outstanding balance of the first loan but wanted someone else's opinion?

Thanks

That is correct.  The current vested balance includes outstanding loans.  You should also consider highest outstanding loan balance for 12 months to ensure not exceeding maximum of $50,000.  The current outstanding loan balance is subtracted from the highest outstanding loan balance to get your reduced  maximum statutory limit.