Topic Archive: Hardship Distributions

What Costs can be Covered Under a Hardship Distribution for Purchase of a Primary Residence?

DWC | 10/30/18

Facts

One of the participants in our 401(k) plan submitted a request for a hardship distribution for the purchase of a primary residence.  On review of the supporting documentation, we discovered that the purchase has already occurred and that the requested distribution is to cover the cost of renovations prior to moving in.

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Q3 Pension Pontifications

DWC | 09/13/18

All of us here at DWC thrive on the really geeky stuff, and some of the best discussions start with Adam and Keith’s pontifications about how different topics impact our clients and our industry.  We decided to bring the best of those conversations to you, still with a touch of geekiness but also distilled into easily digested, bite-sized pieces. Anyone can summarize a summary and call it commentary or analysis. But as always, our commentary is based on reading the actual rules, regulations, executive orders, and advisory opinions.  - As originally published in our Q3 401(k) Q&A Update newsletter

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401(k) Distribution Rules: After Taking a Hardship Distribution, How Quickly Must a Participant Stop 401(k) Contributions?

DWC | 05/8/18

Facts

A participant in our 401(k) plan recently took a hardship distribution. We know we are supposed to suspend his deferrals for six months following the distribution, but we are not entirely clear on how strict that timing is and what happens at the end of the six months.

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Hardship Distributions Will Soon Be Less of a Hardship

Adam C. Pozek | 02/9/18

In the wee hours of this morning, Congress passed a spending bill to end the most recent government shutdown that had just begun at midnight. Although the bill was focused on funding the government and dealt with military spending and other items, a couple of retirement-plan-related provisions managed to find their way in.

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