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A participant had a loan default in 2020 and there was a deemed distribution (he was still employed but not repaying the loan).

 

I understand that the deemed distribution amount needs to be shown on Line 8e on Form 5500 and the Ending Balance should not include that loan amount.

 

However, would you still include the amount of the deemed distribution on Line 10g ("Did the plan have any participant loans?")?

 

Thanks!

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