@Opus17, unfortunately, it appears that advice is incorrect. After being laid off, I rolled the remaining 401k balance to a new IRA I opened with Ameritrade. And I received a 1099R from from Vanguard with the outstanding loan amount coded as M7 in Box 7. I just talked to Ameritrade and they said they have no way of accepting a loan payment for the loan and I would have to go back and talk to Vanguard. Vanguard told me they couldn't accept any payment for it and that I would need to talk to the IRS about any tax implications. The IRS went through a bunch of questions with me and concluded that the WHOLE loan amount is FULLY TAXABLE and that the Tax Cuts & Jobs Act payback extension does not apply because Vanguard and my former employer (or anybody else's employer & investment company like Vanguard) DECIDE THE RULES about payback, not the IRS! Talk about a bum deal. This means I'll be paying a huge tax bill.
Live and learn - always consult a TAX PROFESSIONAL about matters like these.
