401(k) loan deemed distributions as CRDs

[Ian]

Is it clear that a plan loan "deemed distribution" (as opposed to a "loan offset") cannot be treated as a CRD by a CARES Act qualified individual? 

[Luke Bailey]

On ‎8‎/‎5‎/‎2020 at 12:44 PM, Ian said:

Is it clear that a plan loan "deemed distribution" (as opposed to a "loan offset") cannot be treated as a CRD by a CARES Act qualified individual? 

Ian, it is clear to the IRS. Following is from page 6 of Notice 2020-50. I don't think the statute completely forecloses an alternate argument, but in the immortal words of Colonel "Bat" Guano, "You're going to have to answer to the Coca-Cola Company."

However, any amount described in Q&A-4 of §1.402(c)-2 is not permitted to be treated as a coronavirus-related distribution. Thus, the following amounts are not coronavirus-related distributions: corrective distributions of elective deferrals and employee contributions that are returned to the employee (together with the income allocable thereto) in order to comply with the § 415 limitations, excess elective deferrals under § 402(g), excess contributions under § 401(k), and excess aggregate contributions under § 401(m); loans that are treated as deemed distributions pursuant to § 72(p); dividends paid on applicable employer securities under § 404(k); the costs of current life insurance protection; prohibited allocations that are treated as deemed distributions pursuant to § 409(p); distributions that are permissible withdrawals from an eligible automatic contribution arrangement within the meaning of § 414(w); and distributions of premiums for accident or health insurance under § 1.402(a)-1(e)(1)(i).

[Ian]

Thanks very much. Always appreciate your help.