Defaulted Loans reporting.

[jquazza]

A participant defaulted on a loan and loan was deemed distributed.

Subsequently (in the same year), the participant resumed making his loan payments.

Had he not resumed the payments, we would reflect the deemed distribution on schedule H or I and take the loan off the books for 5500 purposes.

Now, because he is making payments, the loan should not be taken off the books, and I assume the deemed distribution should still be reflected.

How do you bring the loan back into the 5500? Would you adjust the regular distributions? I was tempted to do that, but this was the only distribution during the year and I could not obviously enter a negative amount under the distribution (Relius won't let you.)

Does anyone have any insight?