Jilliandiz Posted October 19, 2005 Posted October 19, 2005 Participant wants to take a hardship w/d from a 401(k) Safe Harbor Plan. Can they take all contributions made from the 401k and SAfe Harbor portion, minus any earnings?? Or are they only allowed to take the 401k portoin? The document says the following: Nonelective and basic or enhanced matching contributions under the Safe Harbor CODA Contribution provisions are subject to the same distribution restrictions as Elective Deferrals except the Safe Harbor CODA Contributions specified here may not be distributed under the hardship distribution provisions. The matching contributions that are made to your account to automatically meet certain nondiscrimation requirements are subject to same distribution requirements as your Elective Deferrals. What does this all mean? What are this participants options? Its a 401k & Safe Harbor Matching & Profit Sharing Plan. What is he able to take from?
Tom Poje Posted October 19, 2005 Posted October 19, 2005 my notes for my ASPPA talk say No hardships permitted on safe harbor contributions (Notice 98-52 IV.H) sounds like what your document says as well. yes, generally you can only take hardships on deferreal less earnings, though I have seen some documents that permir hardships on other contributions, e.g. Corbel checklist has the following options: nonelective acct if 100% vested vested non elective account deferrals only deferrals and vested non elective deferrals and 100% nonelective any of those would still seem to exclude Safe Harbor non elective, though I suppose the checklist could be a little more specific in regards to what constitutes nonelective.
Jilliandiz Posted October 19, 2005 Author Posted October 19, 2005 He contributed $14,900 in 401k contributions His balance today is $10,000....so that's his maximum right? I know I sound dumb but sometimes I feel like I confuse myself!
buckaroo Posted October 19, 2005 Posted October 19, 2005 He gets the max if that is what is required by the hardhsip reason. For example if he needs 5,000, he can get only 5,000. If he needs 15,000, he can take the whole amount.
stephen Posted October 19, 2005 Posted October 19, 2005 But clearly he cannot withdraw more than his account balance...
Archimage Posted October 19, 2005 Posted October 19, 2005 Where does it state that in the regs!! Just kidding
Guest Pensions in Paradise Posted October 19, 2005 Posted October 19, 2005 Withdrawing more than your account balance ..... isn't this what they mean when they say "negative election"
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