loan repayment

[Guest Nini]

Former hourly employee became union employee and no longer eligible for the 401(k) plan. This individual has an outstanding loan from a plan in which he no longer participates.

How should this be handled - full loan repayment now or can employee still repay over original period?

Not addressed in the plan loan policy.

Any assistance is appreciated.

[FormsRstillmylife]

He is still employed with the employer. The loan is governed by its stated contract terms. I am betting it only terminates upon non-payment or employment termination. If this is the case, the loan continues in place.

[Guest Pensions in Paradise]

I agree with FRSML. Although this employee is no longer eligible to receive contributions under the plan, he/she is still a participant. Change in status from an hourly employee to a union employee is not a distributable event under the 401k regs.