hardship availability; do diversification and other inservice withdrawals affect hardship availability?

[Guest pamplatt]

Should diversification, 70 1/2 MRD, and an award to an Alternate Payee from the 401(K) account reduce hardship available dollars?

[Alf]

"Should" policy-wise or under current law? I don't agree with the policy of subjecting 401(k) money to more stringent distribution rules than other contributions (generally), but will leave the policy issue to Congress.

Under current law participants have to take available distributions under the plan I believe before being eligible for hardship, so I would say the answer is yes.