Deferrals Not Suspended After Hardship

[goldtpa]

Employee takes a hardship dist in 9/04 to purchase primary residence. ER does not suspend deferrals. I believe that you are to distribute the deferrals plus interest back to the employee.

1. How do you code the 1099-R?

2. Do you have to reduce deferrals?

I will add a third question. Told client that they may have to return money to ee. Client doesn't want to return money to ee. Suggestions?

Thanks

[WDIK]

The following link may have been superseded since it is based on comments made in 1999, but I provide it for informational purposes.

http://www.reish.com/practice_areas/Techni...ps/IRStip36.cfm