IRS Releases 401(k) Hardship Withdrawal Restrictions
- “Eliminate the six-month contribution-suspension requirement;
- End the need to take a plan loan before a hardship withdrawal;
- Make earnings available for withdrawal;
- Ease hardship verification.
- Provide disaster relief.”
Plans that “permit hardship deductions will need to be amended to reflect these new rules by December 31, 2021, but operational changes will be needed to comply with the new regulations by January 1, 2020”.
To read more about this new legislation, please click here.
The information included in this blog post originally appeared in an article from SHRM on September 25, 2019 written by Stephen Miller.