I had the same thought after typing up my last message. I don't think that Empower was ever aware that my husband was terminated since it was so brief (we have a severance letter though). We are trying this approach with Empower now. Fingers crossed.
The loan payments after they resumed were treated as loan payments (though not factored into the amount on the 1099R - doubly frustrating), and they only allow 1 loan at a time. The defaulted loan will sit on the account until paid. We will have the funds available to do a rollover by April 15, but if Empower refuses to recognize it, the defaulted loan will continue to sit there. Any thoughts on these contributions being treated as loan payments after default?
