Vested Amount of 401k meaning

Is Vested Amount of 401k net of outstanding loans?  Do I subtract the current loans from the vested amount, or are those loans already accounted for the the vested amount?  

Thank you.

Strictly speaking the vested balance is the total balance, including the loans, and you then take the vested percentage. 

Simple example:

Assume the person is 100% vested. They have $6,000 in mutual fund balances and $4,000 in loan balance for a total account balance $10,000.

The vested balance is $10,000. 

What I can tell you is some recordkeepers will only show the $6,000 as the vested balance.  I THINK they do that to let people know how much you would get paid if you were to terminate and asked for a distribution.   The platform the company I work for does that and I am not a fan.   The loan is an asset of your account.    If they want to show how much you are going to get paid if you terminate and don't pay the loan back they can start with the actual vested balance and start subtracting the loan from that point.

Sorry, if this is more answer than you wanted.  

Thank you for that.

I am interested in if this method of stating the vested balance of a 401K differs from the above.

I guess I don't understand the question.   

For what purpose do you need to define "vested balance"?  For purposes of allocation a defined contribution account in connection with a divorce?  

5 hours ago, dbm said:

Thank you for that.

I am interested in if this method of stating the vested balance of a 401K differs from the above.

Please try to make your questions as specific as possible.  I'm not sure what you mean by "this method" and what the alternative is that you are referencing.  So without trying to answer that confusing question, let me say this:

The vested amount is ALWAYS the vested amount without regard to any outstanding loan.  The loan is an asset of the plan but the account does have a claim against it IF the loan goes into default. When talking to participants about their balances, it is probably best to show the vested amount AND ALSO show any outstanding loan as a separate entry. For example: "Your vested interest is $40,000; there is an outstanding loan balance at this time of $X."