Calculating participant loan

I understand that the loan amount allowed for my Solo 401k is up to 50% of the 401k account balance or $50,000, whichever is less. If my plan 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?

While the value of all assets within the plan (including real estate) is used to calculate the 401k account balance, the loan can only be taken from the available cash in the plan. This may lower the possible amount you can take as a participant loan from your Solo 401k.

For example 

• Your plan has $20,000 in liquid cash and owns an investment property worth $100,000
• The total plan value then is $120,000 
• Based on this value, you could take up to $50,000 for the participant loan
• However, because you only have $20,000 in cash available, you can only take up to $20,000 for the participant loan, without liquidating your investment property