AlbanyConsultant Posted January 28, 2016 Share Posted January 28, 2016 I have an ERISA 403(b) plan where the plan sponsor wants to allow hardship distributions on all money, including amounts rolled into the plan (as opposed to in-service distributions for any reason). Is there anything in particular that disallows hardships from rollovers in 403(b) plans? Thanks. Link to comment Share on other sites More sharing options...
Carol V. Calhoun Posted January 28, 2016 Share Posted January 28, 2016 So the idea is that although the employer could allow distribution of rollover amounts for any reason, it wants to limit such distributions to hardship situations? That is certainly legal. (You can always have a more restrictive distribution policy than the IRS would require.) The real question is an employee relations one. Employees always have the ability to leave their money in a prior employer's plan, or roll distributions from the prior employer's plan to an IRA instead of to your plan. If you impose substantial restrictions on distributions of rollovers from your plan, employees may be substantially less likely to roll money into your plan in the first place. Of course, the employer may or may not care about that. Employee benefits legal resource site The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances. Link to comment Share on other sites More sharing options...
QDROphile Posted January 28, 2016 Share Posted January 28, 2016 And if the plan restricts rollover amounts, the plan should provide very clear disclosure before the rollover. Carol V. Calhoun 1 Link to comment Share on other sites More sharing options...
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