JAS76

Let's say a participant separates service, leaving behind a $15,000 balance, of which $5,000 is an unpaid loan. After the loan policy's prescribed time for repayment passes, can that loan be offset immediately if the plan document only allows for lump-sum distributions to terminated participants and there has been no request from the participant for a termination distribution? I didn't want to add a ton of hypothetical detail to muddy the waters. I apologize if there's not enough here of if this question has been previously discussed. Does a loan offset count as a distribution such that it can't happen on its own if a plan document only allows lump-sum distributions? Thanks.

Small payout to a beneficiary. No other assets distributed to this beneficiary before or after. $416.23 gross amount in pretax Code 4 monies $425.03 gross Roth Code 4B monies of which $329.75 is basis ($85.28 in Roth earnings) What's the mandatory withholding? Don't read anything fancy into the situation. It's just a basic, non-CARES Act related payout to a beneficiary. Let me know if I've left out a pertinent fact, though. Thanks.

I think the OP's question relates to how, for a qualified Roth distribution, the earnings and basis are allocated. It was easy for me to find references indicating that a non-qualified distribution from Roth includes both earnings and basis, pro-rata. But I was unable to find anything that says the same for qualified distributions. The question is relevant because the money left behind could end up in an IRA down the road that can't make a qualified distribution.