can someone explain how loans in DB plans operate? my main question is how do you account for it if there is no account balance?

The amount of the loan available ties in with the participant's vested present value of accrued benefit. The loan itself is considered an asset of the trust in general rather than being "assigned" to that participant's benefit.

Some fids require that the employee pledge assets to secure the loan in case of a default because plan funding would be affected if the loan cannot be paid as opposed to merely reducing the participant's account.

In certain circumstances, our DC plan will allow for a rollover of the acct. balance with the loan from another company's DC plan.

Is anyone familiar with allowing a loan rollover from a DB plan into a DC plan?
How does this operate? Our recordkeeper has never experienced this either.

Thanks.