Hardship Withdrawal for Medical Expenses

[Guest forum4]

Our 401(k) uses safe harbor for hardship withdrawals. For requests made on account of medical reimbursement, is there any timeframe in which the expense must have been previously incurred? For example, can a participant currently (May 2004) submit outstanding bills from services rendered in 2002 and early 2003? The plan document (Corbel non-standardized prototype) appears to be silent as to the timeframe in which expenses must be incurred, and our Administrative policy does not address. Any guidance would be appreciated.

[FundeK]

If the participant is in a financial situation where the expenses from 2002 or 2003 still haven't been paid, and the expenses meet the definition of medical care (213(d)), then I would approve the hardship. They obviously need the money if they have bills that are 1-2 years old.

[k man]

there is no time frame. the determining factor is whether the expenses are needed to satisfy an immediate and heavy financial need. if the expense was paid for from another source and the participant seeks reimbursement, the need would not be deemed immediate and heavy. but if the situation is that the money is needed to pay the doctor i dont see how you can deny it.