Hardships Not Allowed From Safe Harbor Plans

[sdix401k]

The previous post brought up an interesting question. Reading the ASPA info under PA-2 Section 11.

"QNECS, QMACS, and SAFE HARBOR 401K DEFERRALS are never allowed to be withdrawn for hardship."

I am aware of the QNEC and QMACS, but I was not clear about the distribution of Safe Harbor 401(k) deferrals. Does this mean that a safe harbor 401k plan that consists solely of deferrals and or the safe match / safe harbor non elec cannot offer hardships?

Thanks for the clarification.

[Tom Poje]

that sounds like a typo.

It safe harbor contributions that are not eligibile for hardships.

I don't think there is an animal called safe harbor deferrals.

rather there are deferrals made to a safe harbor plan.

..............

I suppose because of terminolgy the previous post might be considered confusing.

it was referring to hardships that meet the requirements of being 'safe harbor hardships' which doesn't imply the plan is a safe harbor 401(k)

[sdix401k]

Thanks Tom.

The lesson I was referring to did make reference to safe harbor 401(k) deferrals. That looked funny to me as well. The way I understood it was that deferrals made under a safe harbor plan would not be eligible for hardship. This would entail classifying safe habor deferrals as yet another source.

Still think it is a typo? In other words deferrals made to a plan in a year the plan is safe harbor, are eligible for hardship distribution pursurant to the other cavets.

I do understand the reference made in the earlier post regarding the safe harbor standards test regarding a hardship deferral. Thanks!

Thanks in advance.

[Tom Poje]

see notice 98-52 IV H

the last line says

"....hardship is not a distributable event for contributions other than elective contributions."