Until July, if you were laid off at Macy's and had a loan from your 401K, you could continue to make loan payments. Just days before the July layoffs at Macy's Tech, the company changed its policy so that you either have to pay your loan in total, or you default. To change the policy before layoffs is just evil.
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My last company (before macys) let me payoff 401k loan in monthly installments when my job was eliminated, but in typical Macys fashion they ONLY do the bare minimum.
When I google the rule I see no 30 days. I do see it needs to be paid back with payroll deductions. That's hard to do when laid off.
Interesting. @11KWly1y-jtf. My wife was laid off from a different but equally huge company, and they're letting her repay her small 401k loan monthly. I guess they didn't get the memo.
If Macy's was allowing separated Employees to continue to make payments on outstanding 401K loans they should not have been. Government rules stipulate that unpaid 401K loans be paid within 30 days or treated as a disbursement from the plan. You can google the rule.