Hello, sorry if this question has been asked before... I have a defaulted 401k loan that I've already taken the IRS hit on several years ago. The plan administrator site says that, "the defaulted loan amount has been reported to the IRS as a taxable distribution from your retirement plan, and the loan balance still remains outstanding. As an outstanding obligation under the plan, payments must continue until the loan is paid in full (including post default interest accrual) or the loan is offset upon a full distribution from the plan."
If I leave this employer would they still deduct the defaulted amount from my 401k balance they owe me even though I already satisfied the IRS obligation?
