PODCAST: Williams Mullen's Benefits Companion - New Hardship Distribution Regulations for 401(k) Plans
It’s easier to steal when no one is looking. In Ohio, a former plan participant is facing criminal charges for a fraudulent hardship request....more
The Internal Revenue Service (IRS) recently released two notices that provide additional guidance for retirement plan administrators and qualified individuals about the special distribution, plan loan, and required minimum...more
The Coronavirus Aid, Relief, and Economic Security Act (H.R. 748), known as the CARES Act, was enacted today. This legislation contains several important provisions for employers and plan administrators regarding their...more
I was an attorney for a third party administrator (TPA) in 2007 and one of our plan administrator said that a specific 401(k) plan we were the TPA for had a 7 year graded vesting schedule for matching contributions. The only...more
The IRS recently amended the rules applicable to hardship distributions from 401(k) and 403(b) plans. The new hardship distribution regulation relaxes some of the restrictions on the availability of hardship distributions...more
Not all 401(K) and other qualified plans allow hardship withdrawals, but if your plan does allow hardship withdrawals, make sure it is compliant with the new rules finalized in September. All of the changes are optional for...more
As we closed the door on 2018, we were met by two surprising decisions—one from a panel of the Second Circuit addressing employer stock drop litigation, and one from a federal district court in Texas declaring the entire...more
Over the past several years, Congress has made certain changes to the rules that govern financial hardship withdrawals from 401(k) plans. A number of these changes override provisions in existing IRS regulations, and with...more
The Internal Revenue Service (IRS) has issued proposed amendments to the regulations governing hardship distributions under 401(k) and 403(b) plans. Many plan administrators of 401(k) and 403(b) plans permitting hardship...more
As the end of the calendar year approaches, sponsors of qualified retirement plans should consider whether their plan documents require updates to comply with important legal changes and deadlines. Below is a summary of some...more
If your 401(k) plan recordkeeper has not talked to your company lately about hardship distributions, it may be time to reach out to the recordkeeper. The short story is that the IRS recently issued an internal memorandum...more