401k loan taken out then dies

[Keli]

My brother borrowed from his 401k loan last year march, he did not repay it, he died in November what happens to his remaining money in his 401k? 

[ESOP Guy]

The remaining money will go to your brother's beneficiary. 

Hopefully, he completed a beneficiary form.  If he didn't the plan has rules to determine who is the beneficiary. 

[Keli]

2 hours ago, ESOP Guy said:

The remaining money will go to your brother's beneficiary. 

Hopefully, he completed a beneficiary form.  If he didn't the plan has rules to determine who is the beneficiary. 

 

2 hours ago, ESOP Guy said:

The remaining money will go to your brother's beneficiary. 

Hopefully, he completed a beneficiary form.  If he didn't the plan has rules to determine who is the beneficiary. 

Thank you! My niece We made her poa and she not only changed my name on my brothers union pension  since he had me on it since 2003!  To her then says it goes to poa, shes mad as im also beneficary on his life insurance, we lived together for 42 years never been estranged!  He stayed at her house on chemo days as my brother was unable to watch him but i was basically living at her house 99 .9 percent of the time! she now says the remaining will go back to the loan he took out. She put me as secondary beneficiary meaning contingent! I've been searching! Ty so much, not sure what I should do show her screen shot of what you said? Any ideas? Ty so much!

[401_noob]

The loan should have been offset and the unpaid balance would be taxable to the participant (your late brother) or his estate. The tax liability might be reported on the participant's final income tax return or the estate's income tax return. 

I don't know why the loan would have to be repaid since it should have already been offset.