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 a qualified retirement plan’s 2019 Plan year. Operational compliance must begin January 1, 2020. Key changes outlined in
Kimberly Weibley
New IRS Regulations Ease the Way for Hardship Withdrawals from Qualified Retirement Plans
By Kimberly Weibley on
Posted in Employee Benefits
On February 9, 2018, the Bipartisan Budget Act (the “Act”) was signed into law. The Act directed the IRS to revise regulations governing hardship withdrawal provisions in qualified plans. The legislative goal was to expand the circumstances under which hardship withdrawals may be made and eliminate some of the penalties associated with hardship withdrawals.
On…