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Can We Allow a Distribution for a Coronavirus-Related Hardship?

DWC 03/31/20
Facts Some of our employees are dealing with financial challenges due to the coronavirus situation, and they are asking whether they can access their 401(k) accounts.  Our plan allows for loans and for in-service distributions at age 59 ½, but some of these employees are younger than that.  As a plan sponsor, I’ve always felt strongly that our ...
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Can Employees from a Former Subsidiary Take a Distribution from our 401k Plan?

DWC 03/12/19
Facts Our company has several wholly-owned subsidiaries, and each of them has signed onto our 401(k) plan as participating employers.  We sold 100% of the stock of one of those subsidiaries – Glen’s Fiddich, LLC – to an unrelated company.  As a result of the sale, Glen’s Fiddich is no longer related to us and has discontinued participation in our ...
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Can a Participant Get a Jump on RMDs & Start Taking Them a Few Months Early?

DWC 11/6/18
This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start taking their RMDs in the year they turn 70 ½.  Those born after that date are subject to RMDs on reaching age 72. Facts One of the non-owner participants ...
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Can In-Service Distributions be Taken Prior to Age 59 1/2?

DWC 10/23/18
Facts One of the participants in our 401(k) plan heard from a friend that it is possible to take money out of a plan while still employed.  I’ve always heard that age 59 ½ is the rule of thumb as to when in-service distributions are allowed, but this participant is only in her mid-40s.  She has about $100,000 in the plan: $65,000 in employee ...
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Can a Company Owner Withdraw More than the Required Minimum Distribution After Age 70 1/2?

DWC 09/5/17
This QOTW has been updated to reflect changes made by the SECURE Act, which was signed into law on December 20, 2019. Participants who were born on or before July 1, 1949, are required to start taking their RMDs in the year they turn 70 ½. Those born after that date are subject to RMDs on reaching age 72. Facts One of the owners of our company is ...
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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.