News & Analysis as of

Internal Revenue Code (IRC) Hardship Distributions

Epstein Becker & Green

Employee Benefit Strategies to Aid Workers During 2025 California Wildfires

Epstein Becker & Green on

The wildfires moving through Southern California have destroyed communities and displaced countless individuals....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Direct Employer Assistance and 401(k) Plan Relief Options for Employees Affected by California Wildfires

In the past week, devastating wildfires in Los Angeles, California, have caused unprecedented destruction across the region, leading to loss of life and displacing tens of thousands. While still ongoing, the fires already...more

Bradley Arant Boult Cummings LLP

SECURE 2.0: Retirement Plan Changes for 2023

The SECURE 2.0 Act of 2022 was enacted at the end of last year as part of the Consolidated Appropriations Act of 2023. The act sets forth a number of changes affecting retirement plans that go into effect over several years....more

Goodwin

Benefit Plan Considerations for Employers in a Market Downturn

Goodwin on

​​​​​​​When markets are unpredictable, employers may be required to make business decisions that can have unanticipated effects on their retirement and health and welfare benefit plans. Employers should keep the following...more

Verrill

December 31 Sunset of Safe Harbor Correction Method for Certain Elective Deferral Failures Benefits Law Update

Verrill on

A special IRS-approved correction method available for elective deferral failures in 401(k) and 403(b) plans with automatic contribution features will sunset on December 31, 2020, meaning it will not be available to correct...more

Akin Gump Strauss Hauer & Feld LLP

2020 Year-End Key Executive Compensation and Employee Benefits Considerations

COVID-19 has, among other things, had an impact on executive compensation and employee benefits, and given rise to a number of new issues and considerations. These compensation issues present challenges for companies seeking...more

Nutter McClennen & Fish LLP

IRS Provides More Good News with Respect to Retirement Plan Required Minimum Distributions

The Internal Revenue Service released Notice 2020-51, Guidance on Waiver of 2020 Required Minimum Distributions, pertaining to the waiver of 2020 required minimum distributions as described in Section 401(a)(9) of the...more

Verrill

IRS Issues New Guidance on CARES Act Retirement Plan Distributions and Loans

Verrill on

The IRS recently issued Notice 2020-50, which expands relief provided for retirement plan distributions and loans under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Distributions - Under the CARES...more

Eversheds Sutherland (US) LLP

Social distancing: When states decouple from the federal CARES Act

The CARES Act provides for special federal tax treatment for “coronavirus-related distributions” from most types of tax-qualified retirement plans and IRAs. The distribution must be made between January 1, 2020 and December...more

Morgan Lewis

Section 403(b) Plan Remedial Amendment Periods: Out with the Old, In with the New

Morgan Lewis on

With the March 31 deadline to correct form defects in plan documents under the Initial Remedial Amendment Period fast approaching, employers now have less than two months to ensure that their 403(b) plans are in compliance...more

Flaster Greenberg PC

New Retirement Plan Hardship Distribution Rules: What You Need to Know

Flaster Greenberg PC on

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

Verrill

Final Regulations on 401(k) Hardship Withdrawals

Verrill on

In September, the Treasury Department issued final regulations governing hardship withdrawals from 401(k) plans. The final regulations update the existing 2004 regulations to reflect recent statutory changes made to the...more

Dechert LLP

Reducing Administrative Hardship – IRS Releases Final Regulations Relating to Hardship Distributions for Section 401(k) Plans

Dechert LLP on

The Internal Revenue Service (the “IRS”) issued final regulations, effective September 23, 2019 (the “Final Regulations”), that modify the hardship distribution rules for plans established under Section 401(k) of the Internal...more

Alston & Bird

Final Hardship Distribution Rules Are Here: Does Your 401(k) or 403(b) Plan Comply?

Alston & Bird on

Our Employee Benefits & Executive Compensation Group examines the numerous changes – mandatory and permissible – plan sponsors can make to their 401(k) or 403(b) plans in light of new regulations for hardship distributions....more

Burr & Forman

Finally, Hardship Distribution Regulations are Final

Burr & Forman on

The Treasury Department and the Internal Revenue Service (collectively referred to hereafter as “IRS”) on September 23, 2019 published the final regulations on hardship distributions, finalizing the regulations proposed in...more

Bradley Arant Boult Cummings LLP

IRS Finalizes Revised Hardship Regulations - Employee Benefits Alert

The Internal Revenue Service (IRS) has finalized revisions to the regulations governing hardship distributions under 401(k) and 403(b) plans. The final regulations make some subtle but important changes to the regulations...more

Miller Canfield

Proposed Hardship Distribution Regulations Mean Changes for 401(k) and 403(b) Plan Sponsors

Miller Canfield on

Employer-sponsors of certain retirement plans have work to do prior to the end of 2019. Sponsors of Internal Revenue Code ("Code") section 401(k) and 403(b) plans must analyze their plan documents and associated...more

McCarter & English, LLP

IRS Proposed Regulations Relax Requirements For Hardship Distributions

The IRS recently issued proposed regulations relating to hardship distributions under 401(k) plans. The proposed regulations generally clarify or supplement recent statutory changes, including those made by the Bipartisan...more

K&L Gates LLP

New Flexibility for Hardship Withdrawals: Permissive Changes Starting 2019 and Required Changes by 2020

K&L Gates LLP on

On November 14, 2018, the Internal Revenue Service (“IRS”) released Proposed Regulations to implement and expand upon the changes to 401(k) hardship distribution rules, previously mandated by the Bipartisan Budget Act of 2018...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

“Hard[ship] to Handle”?

Otis Redding and the Black Crowes may have proclaimed themselves “hard to handle now,” but thanks to recent guidance from the Internal Revenue Service (IRS), hardship distributions from 401(k) plans are a bit less hard to...more

Jackson Lewis P.C.

IRS Proposed Regulations Implementing Changes To Hardship Distribution Rules

Jackson Lewis P.C. on

Earlier this year we reported on legislative changes that modified the requirements related to hardship distributions from 401(k) plans. Recently, the IRS issued proposed regulations that if finalized will implement those...more

Dickinson Wright

Restrictions On 401(k) Plan Hardship Distributions Are Eased in Proposed Regulations

Dickinson Wright on

The IRS has issued proposed regulations affecting hardship distributions under 401(k) plans. The regulations would implement changes made by the Bipartisan Budget Act of 2018, and are updated for several earlier legislative...more

Seyfarth Shaw LLP

IRS Releases Proposed Hardship Distribution Regulations

Seyfarth Shaw LLP on

Hopefully still in time for 2019 plan design discussions, on November 9, 2018, the Department of the Treasury and the Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking to amend IRS regulations related to...more

Kilpatrick

IRS Proposes New Hardship Distribution Regulations; Regulations to Prohibit Deferral Suspensions Beginning 2020 and Provide a New...

Kilpatrick on

The Internal Revenue Service (“IRS”) has issued proposed regulations that would change the rules for hardship distributions from 401(k) and 403(b) plans. The hardship distribution rules allow participants in these plans who...more

Verrill

401(k) Plan Sponsors – Time to Revisit Your Hardship Withdrawal Provisions

Verrill on

The Bipartisan Budget Act of 2018 (“Budget Act”) includes several changes to the rules governing hardship withdrawals from 401(k) plans. Because the changes apply to plan years beginning after December 31, 2018, 401(k) plan...more

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