Hardship Withdrawal-reinstatement of deferral 6 mths later

[Guest Julie Woulfe]

Once a participant takes a hardship withdrawal, should his salary deferral start back up automatically after 6 months, or should the participant be contacted to complete another election form? Is there any problem/issue with the administrator starting the deferral back up automatically?

[Kirk Maldonado]

Does your plan document address this issue?

[Bird]

If the document doesn't say anything, then unless the participant has changed his election, deferrals should re-start when they are no longer prohibited; i.e. you are simply following the participant's election.