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S-Corp sponsors a SH 401(k) plan, which allows for deferrals, SH match and discretionary PS contributions, and plan loans. 100% shareholder in S-Corp took out a $50,000 plan loan in late 2019, with payments from bi-weekly payroll beginning January 2020. All loan payments were deducted from shareholder’s pay in 2020. In 2021, due to cash flow problems, shareholder did not receive several paychecks. He missed paychecks for ten of 26 pay periods in the year. For the pay periods in which the shareholder did not get paid, no loan payments were withheld for those pay periods. (There was at least one loan payment withheld from his pay in each calendar quarter.) In addition, due to cash flow problems, the S-Corp did not remit any withheld loan payments to the retirement plan after January 2021. (All 14 loan payments withheld in 2020 but not previously remitted were remitted to the plan in January 2022. ) In March, 2021, the shareholder sent a personal check for $20,000 payment on the loan. The plan is on FtWilliam document and allows for such additional payments although it does not allow for refinancing. What are the options to fix this situation? Can the $20,000 be used to satisfy the loan payments that were missed because no paycheck was issued? Is it possible to avoid a deemed distribution? What are other issues that need to be addressed (other than educating the shareholder about missing loan payments)? Thanks!