dmertz
Level 15

Retirement tax questions

Whether you can continue to pay the  401(k) over time is governed by the terms of the 401(k) plan.  You'll have to ask the plan administrator.  As MindyB indicates, in most cases the plan requires an offset distribution (not a deemed distribution) to be made, effectively paying off the loan using funds in your 401(k) to satisfy the loan and treating it as a distribution.