Loan Repayments on a deemed loan

[FundeK]

I also posted this question in the Distributions & Loans Forum....I wanted to make sure everyone got a chance to take a look, so I also posted here!

Okay, I understand the loan repayments on a deemed loan generate basis and are not considered employee contributions for purposes of the nondiscrimination test under §401(m) nor for purposes of the §415 limits.

My question is, how are these repayments treated for future distributions? For all of the recordkeepers out there.....(or anyone else who can answer this!), how are the loan repayments put back into the participant's account?

For example, you have a deemed loan repayment of $3,000. The original loan was taken out as $2,000 deferrals, and $1,000 match. When you process the deemed loan repayment, do you have to deposit back into the account as deferral and match, or can you redeposit it as after-tax?

If you have to deposit it as deferral and match, you now have basis in "pre-tax" sources? If you redeposit it as after-tax, are they now subject to after-tax withdrawal requirements?

Any cites would be greatly appreciated!!

[FundeK]

No takers huh? Did I phrase the question okay, or are they not clear? I am just not sure what kind of withdrawal restrictions should be place on funds attributable to an after tax deemed loan repayment.