I have a client with a 401(k) plan (no hardship distribution provision). One of the participants just missed his second quarterly loan payment in a row. The loan policy in place for years wasn't followed -- it provides that the plan administrator is to provide notice and an opportunity to cure. If we don't use the proposed regulations (1.72(p)) is it possible that when final regulations are issued that this will be treated as a deemed distribution, regardless of how the plan administrator handles this file? Any advice on this whole situation would be appreciated.