401k Hardship

[DP]

A client has a Safe Harbor 401k Plan. The only money sources are the 401k deferrals and the Safe Harbor Match. They are wanting to add Hardship Withdrawal provisions to the plan.

If a hardship withdrawal is taken from the deferral contributions, are the deferrals stopped for 6 months or 12 months? I keep reading conflicting answers.

Must the 10% federal tax be withheld or is that optional?

Thanks.

[WDIK]

The six month waiting period is an optional amendment available under EGTRRA.

[Harwood]

6 month suspension may be mandatory for Safe Harbor plans; optional for others