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This type of situation is the part of the motivation for the SECURE 2.0 self-certification provision removing requirement to submit documentation. The SECURE 2.0 provision is optional and can be effective on or after 12/29/2022. The plan sponsor or administrator should at least be able to document the decision to use the new rules and communicate them to participants, and also inform the participants that they need to retain the documentation in case the IRS asks for it. Back to this situation, funeral expenses are a safe harbor reason, the immediacy is readily apparent, so the remaining issue is documenting the financial need that cannot be met by the participant from other sources. I wonder how tough the IRS would be under these circumstances.

IMHO, if the plan accepts self-certification, where's the problem? As a Plan Administrator, I'd accept the self-certification with no questions asked. There might ultimately be some repercussions to the participant if the IRS audits and finds the "hardship" was pure BS, but not the plan's problem.

Just to set the record straight - I am *not* Austin's MoJo.... 😁

I believe there is a pandemic of INSECURE 2.0.

At this point, with my career in the rear-view mirror, I am of the opinion that the retirement plan rules are fundamentally broken and unfixable. We have widespread noncompliance, both due to complexity and willful neglect. I can't say I've given it that much thought but maybe, just maybe, we need to move to some kind of mandatory employer contribution (SS after all is a mandatory employer contribution) that goes into some kind of DC plan...like a SH nonelective. Get rid of the auto-enrollment stuff, or at least make it optional. And increase the 401(k) max but decrease the overall DC 415 limits and get rid of cross-testing (if you want a DB plan then put in a DB plan!) and otherwise simplify. I am literally doing this on the fly so it's not like I gave it any previous thought, and my opinion is no doubt colored by working with small plans and largely taking TH contributions as a given.

I am not an attorney, just a lowly TPA, but when I started reviewing the ACT, I thought I would create a spreadsheet that I could sort by the code section, effective date, etc. This was just my first run through and obviously needs to be updated, but please feel free to take it and make it your own. Secure 2.0 Provisions.xlsx