Plan Distributions

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We’ve corralled the best news from inside the beltway – not only regulations, but also new legislation from Congress as well as relevant guidance from the IRS and Department of Labor. In true DWC fashion, we don’t just repackage a recitation of the rules, we provide our thoughts and commentary about what those rules mean to you.

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

10/22/24

DWC | 10/22/2024

Hardship Distributions

Plan sponsors have the option to allow participants to access their accounts while still employed via a plan loan or an in-service distribution. However, some companies prefer to limit that access so ...

DWC | 10/22/2024

Form 8955-SSA FAQs

What information is required to be reported on the Form 8955-SSA? The form requires the plan sponsor to report any participant who terminated in a prior year and is still due a vested benefit from ...

Jen Swets | 12/11/2023

New Distribution Options to Encourage Savings

Sue Schnur | 11/13/2023

Grab Bag of RMD Changes

Carter Kimball | 10/17/2023

Cash Out Limit is Movin' On Up

Haden McDonald | 10/12/2023

Trust But Verify...But Not For Hardship Distributions

DWC | 02/25/2021

Can I Convert a Coronavirus-Related Distribution to a Roth IRA?

Facts We added Coronavirus-Related Distributions (CRDs) to our 401(k) plan in 2020, and a number of our participants availed themselves of the new feature. I know they have the option to pay any ...

DWC | 09/15/2020

Can a Former Employee Roll a Coronavirus-Related Distribution Back into our Plan?

Facts Earlier this year, we decided to make the CARES Act coronavirus-related distributions (CRDs) available to participant in our 401(k) plan. We know that it is possible for participants to repay ...

DWC 401(k) Q&A: How Can I Minimize my Risk When Reviewing and Approving a Hardship Withdrawal?

DWC | 08/25/2020

How Can I Minimize my Risk When Reviewing and Approving Hardship Withdrawals?

Facts As a plan sponsor, I want my employees to have access to their retirement accounts in the event of a financial emergency. I know that offering hardship withdrawals could satisfy that goal, but ...

DWC | 06/16/2020

Do We Have to Provide New Paperwork When a Participant Requests a Second Distribution?

Facts When a participant requests a distribution from our plan, I provide them with a with a package that includes an election form and a bunch of other information. A participant who terminated and ...

DWC | 05/19/2020

Should We Make Up for Earnings Lost as a Result of a Delayed Distribution?

Facts Over the past several months, our turnaround times for normal business processes have lagged somewhat as we have adjusted operations in response to the various stay-at-home orders. When ...

DWC 401(k) Q&A: Is There Any Coronavirus Relief for Participants Who Want to Postpone Loan Payments?

DWC | 04/14/2020

Is There Any Coronavirus Relief for Participants Who Want to Postpone Plan Loan Payments?

Facts Several participants in our 401(k) plan currently have outstanding plan loans, and many others are looking to initiate them. However, given the current pandemic, many participants are concerned ...

DWC 401(k) Q&A Question of the Week: How Does the CARES Act Expand Availability of Plan Loans?

DWC | 04/7/2020

How Does the CARES Act Expand the Availability of Retirement Plan Loans?

Facts Our 401(k) plan allows participants access to their accounts via hardship distributions and, for those at least age 59 ½, via in-service withdrawals. But with the economic uncertainty of the ...

DWC | 03/31/2020

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

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 ...

DWC | 02/25/2020

Do We Still Need to Suspend Deferrals Following a Hardship Distribution?

Facts Larry and Kent are both participants in our company’s 401(k) plan. Both recently went back to school on a part-time basis to pursue graduate degrees and will continue working for us. Each of ...

DWC | 02/18/2020

Do We Need to Continue Paying RMDs for a Deceased Participant?

Facts The CEO (and 5% owner) of our company passed away earlier this year at the age of 73. He started taking his required minimum distributions right on time after reaching age 70 ½. At the time of ...

DWC | 12/10/2019

Do 401(k) Loans Impact a Participant's Credit Score?

Facts Our 401(k) plan allows participants to take loans from their accounts. We have a written policy that describes how the loans work and spells out the requirements that the plan and participants ...

DWC | 12/3/2019

What is a Suspense Account and Can We Use Our Forfeiture Account Instead?

Facts The annual compliance report that our TPA provided to us indicates that we over-funded matching contributions for certain employees and instructs us to transfer the excess amounts out of the ...

In the News_Blog Header Image_IRS Final Hardship Distribution Regulations_10.24.2019

DWC | 10/24/2019

DWC News Update | Two Years in the Making: The Final IRS Hardship Distribution Regulations Are Here

It’s been a while, but we finally have them! Late last month, the IRS published the final hardship distribution regulations, nearly two years after Congress passed the Bipartisan Budget Act and the ...

DWC | 09/24/2019

How Do I Calculate How Much Money is Available for a 401(k) Loan?

Facts The participants in my company’s 401(k) plan are regularly inquiring about how much money they have available for a loan. When I report back the amount available to them, it’s not unusual for ...

Uncashed Distribution Checks_DWC News Update_8.15.2019_blog header image

DWC | 08/15/2019

Uncashed Distribution Checks? The IRS Provides New Guidance...Sort Of

Just about anyone who has dealt with a 401(k) plan – either as a plan sponsor or a service provider – for any amount of time has had to deal with the issue of participants not timely cashing plan ...

DWC | 04/23/2019

Are We Required to Force Former Employees to Take Their Money Out of Our Plan?

Facts We just received our year end testing and it mentioned that we have several terminated participants with small balances that we are required to distribute from the plan. I remember seeing ...

QOTW - 3.12.2019 - Can Employees from a Former Subsidiary Take a Distribution for our 401k Plan - Plan Distributions and MandA

DWC | 03/12/2019

Can Employees from a Former Subsidiary Take a Distribution from our 401k Plan?

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 ...

QOTW - 3.5.2019 - Plan Loans and Past Participants - Plan Distributions

DWC | 03/5/2019

Plan Loans & Past Participants: What Happens to a Participant's Loan Balance When They Terminate Employment?

Facts We have a participant who took a loan from his 401(k) account at the beginning of the year. Yesterday, he gave us notice of his resignation, effective in two weeks, but he still has an ...

QOTW - 12.18.2018 - Hardships and Hurricanes_What are the Hardship Rules Following a Natural Disaster_Plan Distributions

DWC | 12/18/2018

Hardships & Hurricanes: What are the Hardship Rules Following a Natural Disaster?

Facts Our company sponsors a 401(k) plan. One of our participants lives in the Florida panhandle and lost her home in Hurricane Michael. She is under age 59 ½ and is not eligible to take in-service ...

DWC | 12/11/2018

Are We Still Required to Suspend Deferrals Following a Hardship Distribution?

Facts I sponsor a 401(k) Plan for myself and my staff. I recently processed a hardship distribution for the purchase of my primary residence in October 2018. I know the rules require me to suspend my ...

DWC | 11/27/2018

Are RMDs Required for a Retiree Turned Independent Contractor?

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 ...

Hardship Regulation Update_11.13.2018_Blog Header Image

DWC | 11/13/2018

Breaking News: Hardship Distributions Becoming Even Less of a Hardship Than Previously Expected

Nearly a year after Congress passed changes to the hardship distribution rules in the Bipartisan Budget Act and the Tax Cuts and Jobs Act, the IRS has published proposed regulations to fill in some ...

DWC | 11/13/2018

Can We Suspend RMDs for a Rehire?

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 ...

QOTW - 11.6.2018 - Can a Participant get a Jump on RMDs and Start Taking Them a Few Months Early - Plan Distributions

DWC | 11/6/2018

Can a Participant Get a Jump on RMDs & Start Taking Them a Few Months Early?

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 ...

DWC | 10/30/2018

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

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 ...

QOTW - 10.23.2018 - Can In Service Distribtuions Be Take Prior to Age 59.5 - Plan Distributions

DWC | 10/23/2018

Can In-Service Distributions be Taken Prior to Age 59 1/2?

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 ...

DWC | 09/25/2018

Can a Charitable Organization be Named as a Plan Beneficiary?

Facts Our company sponsors both a 401(k) plan and a cash balance plan. One of our employees is a strong supporter of a local charity. She does not have a spouse or children, so she would like to name ...

QOTW - 5.22.2018 - Can a Company Freeze a 401k Account if an Employee is Suspected of Stealing - Plan Distributions

DWC | 05/22/2018

Can a Company Freeze a 401(K) Account if an Employee Is Suspected of Stealing From the Company?

Facts We just discovered that one of our employees has been stealing money from the company for quite some time. We fired him as soon as we discovered the theft, and we are working with the police ...

DWC | 05/8/2018

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

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 ...

QOTW - 5.1.2018 - Is it Possible for a 401k Beneficiary to Waive Benefits - Plan Distributions

DWC | 05/1/2018

Browse categories

DWC Developments

Industry Insights

Regulatory Round-Up

Cash Balance Corner

401(k) Q&A

Operational Overview

Lessons from Litigation

Pension Primer

Plan Document

Plan Compliance

Defined Benefits Services

Mergers, Aquisitions & Related Company Analysis

Plan Corrections

Government Audits

Investment Advisor Support

DWC Developments

Industry Insights

Regulatory Round-Up

Cash Balance Corner

401(k) Q&A

Operational Overview

Lessons from Litigation

Pension Primer

Hardship Distributions

Getting Mergers and Acquisitions Right for your 401(k) Plan

Form 8955-SSA FAQs

Form 5500 FAQs

Form 5330 FAQs

Fiduciary Duties & Due Diligence 101

"Complete Control" with Recommended Contributions

“Cover Me” with the Pension Benefit Guaranty Corporation

10 Common Retirement Plan Compliance Failures Found by the IRS

2020 DOL Enforcement Stats: Is the Glass Half Full or Half Empty?

2020 Retirement Plan Tax Deductions - It's Not Too Late

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

Our Team

Join the 401k Experts

Plan Distributions

Extra! Extra! Stay up to date on the latest news about the DWC team.

The retirement plan landscape is ever evolving. We distill the details so you don’t have to!

We know cash balance rules can be intimidating! Settle into the Cash Balance Corner and let us break it down for you.

Have 401(k) questions? We have 401(k) answers! We bring you answers to many of the common questions we receive.

A behind-the-scenes look not at how the sausage is made, but why we make it the way we do. (Hint: It’s all about the best interests of the client.)

We’re all about learning from other people’s (alleged) mistakes. We might not be attorneys, but we still follow benefits-related cases and summarize lessons and key take-aways. No hourly fee needed for these insights!

A deeper dive into retirement plan topics doesn’t have to be headache-inducing. Our Pension Primer articles provide depth of information without depth of jargon!

Browse categories

Subscribe to our newsletter

Only the Best Retirement Industry Content

As Featured In

Sign up to receive insights from DWC