If your 401(k) plan is being discontinued because of the company closure, any unpaid loan balance will be treated as a distribution, incurring ordinary income tax, plus a 10% IRS penalty if you have not reached age 59.5. It may be possible for the account to remain in place until you are able to repay the loan.

As for the amount remaining in the old plan, you can roll the funds into another qualified plan. You can transfer the funds into your new employer's plan. This is relatively simple, but offers no particular advantage to you except that it remains tax deferred. Rolling the funds into a self-directed IRA is normally the best option, allowing you full control over how and where the money is invested.

This depends on many things. If they terminated the plan and reported that to the IRS, they have to wait for final approval from them. Terminations can be quick.. others can take months. If the FDIC is involved it can take a year or more.. If the finance company sent the checks to your employer, they may have final accounting to take care or. Some wait till year end to complete the account for the entire year. THey have as long as it takes. There is no immediate requirement to pay it out. Keep in contact with them -- you will get it, just maybe not as quick as you like.

Thank you, I was informed they will be dispersing funds to the employees the 15th of this month.