Loans--Death

[Felicia]

If a participant takes out a loan and dies before the loan is repaid, can we write into our documents that the loan is in default immediately upon the participant's death? Cites would be helpful.

[QDROphile]

What is the big hurry?

[RTK]

For what it is worth, I routinely include death an an event of default permitting the plan administrator to require repayment of the entire loan balance. I know the DOL regulations require that plan loan provisions specify the events of defaults, but I am not aware of any specific cites or guidance on permitted or prohibited events of default.