Tuesday, December 17, 2019

IRS Hardships Got Easier

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.