Calculating participant loan

I understand that the loan amount allowed for my Solo 401k is up to 50% of the 401(k) account balance or $50,000 whichever is less.  If my Solo 401(k) owns real estate, does the value of the real estate count as part of the account balance, or is it only based on the cash balance in the account?

Answer:

The value of all assets including real estate is taken into account to calculate the value of the 401(k).  However, the 401(k) loan can only be taken based upon available cash in the account.  

Example

Your plan has $20,000 in liquid cash and owns investment property worth $100,000.  The total plan value is $120,000.  Based on the rules, you can have access up to 50% of the value of the plan or $50,000 whichever is less.  In this case the maximum loan amount would be $50,000.  But you only have $20,000 in cash available, therefore $20,000 would be the maximum amount you could take out as a loan without liquidating your investment property.