Amending Plan to Loan Acceleration Upon Termination of Employment

[Guest aciepluch]

Plan/ loan program currently provides that a participant's plan loan is accelerated upon his termination of employment. Employer would like to amend the plan to remove this acceleration and permit continued loan repayment following a termination of employment. Can this change be applied to existing plan loans? I think yes for loans made on or before 1/1/2004, under the "refinance" regulation, but I'm not so sure for those made prior to 2004.

[Guest Sieve]

The answer ought to be "yes", as long as the 5-year term has not expired--even a re-finance may not be able to amortize a loan beyond the 5-year period from the date the loan originated. But, what does the re-finance portion of the regs have to do with whether or not payments can continue after termination of employment?