My husband took a loan from his 401K a month or two before he died. The repayment was scheduled through his payroll deductions. Is it advisable for me to repay the loan in full OR can I make monthly payments to the loan as he had been doing OR just continue with the 401K minus what was borrowed?

I'm sorry about your hsuband's passing. I can only imagne hoe stresful it may be to have to deal with these mundane issues at ths time, but unfortunately you do need to work through a few details. First, I suggest you contact the plan administrator of the 401(k) and ask what the rules are. Most plans will automatically distribute all assets of the 401(k) of deceased employees to the beneficiary. If they do this, you have the option of either:

(a) keeping the money - you have to pay income tax on it, but there is no 10% early withdrawal penalty. If you are going to keep the money there really no point in trying to pay the loan back, or
(b) rollling it to an IRA of your own. If you roll it over you do not need to pay income tax (until you make withdrawals from that IRA). If you're thinking about doing the IRA rollover, and if you have the cash to pay back the loan in one lump sum before the rollover occurs, it MAY be possible to do that and avoid taxes on the outstanding loan amount - but I'm not entirely sure about that. So again - ask the plan administrator how this would work.

Also - here's a site that gives a good summary of your options:
401khelpcenter.com - What You Need to Know When You Inherit a 401k (http://www.401khelpcenter.com/mpower/feature_2beneficiary.html)

Thank you very much. Surely "retirement" came too early for my husband and myself to delve into 401K questions. But as they say, it is what it is and I truly appreciate your answering my question.

Yes, the money at this point will go to the person he has named in the 401 K to receive it upon his death.

You can take the money and move it into your own retirement plan if you wish or open your own IRA or Roth to put it in.