Deemed distribution - loan payments never made

[Guest terid]

I have a client who took out a $50,000 loan in June 1999 and never made a payment and a 1099r was never issued. Cure period is quarterly

My question is how much would the 1099R be? Would accrued interest be added on through now (2004) or just through the cure period?

[FundeK]

For the 1099-R, accrue interest through the end of the cure period.

If the participant chooses to repay the loan now, he will have to pay the original principal plus accrued interest through the payoff date.