52626 Posted July 22, 2016 Share Posted July 22, 2016 Participant makes both pre tax and Roth 401k contributions. The participant took a Hardship Distribution ( from pre tax account). Payroll Company stopped the pre tax deferral, but continued to withhold the Roth Deferral. to me a deferral is a derferral is a deferral. Therefore if a participant takes a hardship all deferrals ( pre and Roth) stop for the 6 month suspension. do you agree?? Link to comment Share on other sites More sharing options...
Tom Poje Posted July 22, 2016 Share Posted July 22, 2016 agree the regs are quite clear 1.401(k)-1(d)(3)(iv)(E)(2) the employee is prohibited...from making elective contributions and employee contributions to the plan and all other plans maintained by the employer for at least 6 months so, how does a Roth get taken out of a paycheck unless a person 'elects' to have it done (hence the term elective contribution)? Link to comment Share on other sites More sharing options...
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