Payback Loan After Default - after 1099R issued

[Barbara S]

Sophia,

I just now came across your post(s).

You are correct.  As per the TCJA Section 13613, there is a provision for Qualified Plan Loan Offsets.

Qualified Plan Loan Offset Amounts Section 13613 of TCJA amended section 402(c)(3) of the Code to provide an extended rollover deadline for qualified plan loan offset (QPLO) amounts (as defined in section 402(c)(3)(C)(ii)).3 Any portion of a QPLO amount (up to the entire QPLO amount) may be rolled over into an eligible retirement plan by the individual’s tax filing due date (including extensions) for the taxable year in which the offset occurs. A QPLO amount is defined in section 402(c)(3)(C)(ii) as a plan loan offset amount that is treated as distributed from a qualified employer plan to an employee or beneficiary solely by reason of: (1) The termination of the qualified employer plan, or (2) The failure to meet the repayment terms of the loan from such plan because of the severance from employment of the employee.

 https://www.irs.gov/pub/irs-irbs/irb20-37.pdf