Kathy Bittle Posted March 15, 2020 Share Posted March 15, 2020 I have a client that has failed the ADP test and will need to take a refund. However, last April he took a hardship distribution which wiped out most of his deferral account and he now does not have enough money to process his refund. What course of action would we need to take? Technically the deferrals are no longer in his account and he did not roll it over so basically we have the same result except for the distribution code and early withdrawal penalty. He was not 59.5 when he took his hardship. Any help is much appreciated. Link to comment Share on other sites More sharing options...
ratherbereading Posted March 16, 2020 Share Posted March 16, 2020 This is really old, but may help you. What are you doing on here on a Sunday??? 4 out of 3 people struggle with math Link to comment Share on other sites More sharing options...
Luke Bailey Posted April 7, 2020 Share Posted April 7, 2020 I think this is just a reporting issue. The portion of what was thought to be a hardship earlier was actually a distribution of excess contributions. Make sure the two distributions are properly reported/coded on the 1099-R(s) for 2019. File a corrected 1099-R if necessary. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
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