Harry (age 58) and Mary (age 56) are looking at their options to purchase a primary residence instead of renting. Harry has a 403(b) plan that he contributes to and Mary has a 401(k) plan that she contributes to. Both will continue to work and don't plan on retiring for several more years. Harry is fully vested but Mary has not checked yet but thinks she is close. Mary has made 20% pre-tax contributions and no Roth contributions to her accounts for many years into S&P 500 Index funds. Harry has made 10% pre-tax contributions going into his account.

Harry borrows the money from her qualified plan and the next year they both retire and are unemployed. All of the following are possible effects that could happen with her loan except:

a. The loan becomes fully taxable if she doesn't repay it

b. She can make a check for the full amount due on the loan

c. She can continue to make payments over a period of time if her plan allows

d. She will be subject to a 10% penalty if not repaid