I have participant (age 80) who had a loan through his ex-employer in 403b plan. The hospital is being bought so the plan is going away and since he is retired the new plan (employer) will not allow the loan to be transferred. His option to pay the loan in full or let it default and pay taxes on balance. He has yet to take his RMD for the year. If he lets the loan default would this balance count towards his RMD requirement?

Thanks in advance.
Nick