In-Service Distributions with Loans
Taking out money while you have a loan balance
If you request an in-service distribution and have an outstanding loan balance, you must leave a minimum of $500 in your account.
For example, if you have a balance of $2,000, and you have a loan balance of $1,000 (a total of $3,000), you can withdraw a maximum of $1,500. That leaves an actual balance of $500 and a loan balance of $1,000.