Defaulted Loan:

[Guest Pennysaver]

After making monthly payments as required on his participant loan, Participant ceases to make loan repayments as of July 31, 2010.

The plan sponsor provides for a cure period through the last day of the calendar quarter following the calendar quarter in which the required installment payment was due.

The cure period for Participant therefore ends on December 31, 2010. Participant does not make any loan repayments by December 31, 2010.

Question: Since the cure period ended December 31, 2010, and Participant did not make a payment by December 31, 2010, is the defaulted loan balance deemed distributed as of December 31, 2010, the last day of the cure period? Or is it deemed distributed as of January 1, 2011, the first day after the cure period expired, since Participant had through the end of December 31, 2010, to make a payment?

[Guest Offender]

I think the deem date should be on the last day of the cure period, in this case being December 31, 2010. Deeming on the next day only means your system is not set up correctly