Two questions regarding after-tax basis recovery.

1. Plan utilizes separate contract method for basis recovery. Total basis = 1000, separate contract balance = 900. If participant reduces separate contract via distribution to zero, is the remaining basis of 100 lost to participant, or recoverable during some subsequent event?

2. Plan does not provide for after-tax contribution but allows loans. Participant defaults on loan, and subsequently resumes payments, creating basis. In a separate contract environment, when would basis be recoverable?