401(K) PLANS: Does This Qualify as a Hardship Distribution? How Involved Should a TPA Be?

When a 401(k) plan allows participants the option to take a safe harbor hardship distribution, it may encourage participants to contribute to the plan because they know they will have funds available if they really need them. It is in the best interest of the plan, though, for the plan sponsor to fo...

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Bibliographic Details
Published inJournal of pension benefits Vol. 25; no. 2; pp. 44 - 46
Main Authors Baker, Melissa, Canter, Stephen
Format Journal Article
LanguageEnglish
Published New York Aspen Publishers, Inc 01.01.2018
Subjects
Beneficiaries
Certification
Deferred compensation
Documentation
Foreclosure
Memoranda
Retirement plans
Safe harbor
Third party administrators
United States > US
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Summary:When a 401(k) plan allows participants the option to take a safe harbor hardship distribution, it may encourage participants to contribute to the plan because they know they will have funds available if they really need them. It is in the best interest of the plan, though, for the plan sponsor to follow all necessary guidelines for hardship distributions to avoid a qualification issue.
ISSN:1069-4064