Gov't 457(b) participant retirees with an outstanding 457 loan. Does anyone know if there is a 10% penalty due to the outstanding loan?
Thanks.

If you are talking about the early withdrawal 10% excise tax (pre age 59.5, or pre age 55 lump sum, or pre-age 50 if public safety), then you will be pleased to know that the 10% penalty does not apply to 457(b) plans anyway.

For instance, distribution code 1 on the 1099-R for a 457(b) distribution would only apply if a distribution from the plan included some non-457(b) rollover eligible money that had been rolled into the 457(b) account in the past, and it would only apply to that portion of the distribution.

edit: grammar