Hardship Suspensions

[Guest kmathis]

Hello.

I have 2 employees who have taken hardship withdrawals and while on suspension have taken a second hardship withdrawal. Do I tack another 6 months on the end of the first 6 month suspension period (i.e., suspend contributions for a year), or can I start the 6 months over at the point of the second withdrawal? If there is IRS guidance on this issue, I'd love to know where to find it.

Thanks!

[WDIK]

The prohibited deferral period begins "after the receipt of the hardship distribution".

See 1.401(k)-1(d)(3)(iv)(E)(2).