Depending on Plan Provisions (please review the Summary Plan Description for details on your Plan's Loan Policies), your loan may become due and payable, in full, upon termination of employment. Continued payments may not be permissible. If the outstanding loan is not paid in full (contact us for details on how to make a lump sum payment of your loan balance), the loan enters into default. This has no consequences outside of the Retirement Plan (i.e. no effect on your credit score). The outstanding balance of the loan is converted into taxable income for the year of the default and a Form 1099-R is issued (at the end of January the following year) indicating the tax liability for the Tax Year in which the loan default occurs. If you elect to distribute or rollover your account balance, the outstanding balance of your loan is offset (reducing your account balance) and is treated as taxable income.