TSM recently changed how it was calculating the maximum loan amount available.... Our firm charges a loan fee of $150. It has always been my understanding that the $150 must be taken into account when calculating the maximum loan amount if you are amortizing the fee in with the loan. TSM now does not include the fee in the 50% calculation.

For example:

Participant A --

Account Balance 8,552.63
times 50% 4,275.00

TSM is calculating the maximum loan amount as $4425, saying that the loan fee is not taken into account in the calculation, but can be added onto the am schedule.

They also now show the loan fees as "Fees" on the asset rec, which I back out of the fees I report on my 5500's, etc. since that money will be repaid to the plan.

Any input on this would be helpful. Thanks.