On September
23, 2019 the IRS published the final regulations on hardship
distributions. These final rules
include:
•
Eliminating the six-month suspension of employee elective
deferrals after a hardship distribution
•
Allowing employer QNECs and QMACs (qualified nonelective and
matching contributions) and earnings to be included in hardship distributions*
•
Permitting hardship distributions without first requiring that
plan loans be taken
Most employers will
have to amend their plans to meet these new requirements. Click here to learn what you need to
know now. For more complete details, including a hardship distribution overview, click here.
Based on these final
regulations, our hardship distribution forms will be updated. Watch for a notification soon of their availability on the plan website, so you can download
them to replace your existing forms.
*This rule does not apply to most 403(b) plans.
