Reporting of Repaid Deemed Distribution

[J. Bringhurst]

If a defaulted loan that is a deemed distribution is repaid by the participant, how is the deemed distribution reported on the 1099-R if the outstanding amount is fully repaid by the end of the year in which the deemed distribution must be reported?

[Bird]

Repayment of the loan doesn't affect the 1099-R for the deemed distribution - you just report it as taxable income. The subsequent loan repayments, as a I recall, are treated as after-tax contributions and are tax-free when they are eventually distributed.