Dated Hardship Expense

[30Rock]

What do you do when the expense submitted was over a year ago? Is there a time limit for approving hardships distributions? What do other practioners do, is it an internal procedure that you need to establish as to how old an expense can be?

This is an ERISA 403b plan using the IRS safe harbor standards.

Thanks!

[ACox]

On face value I would have concerns with using a year old expense for a hardship request. With that being said, I personally have received Dr. and Hospital bills (for the first time) almost 1 year after the treatment. I am not sure what happened in the billing department for those parties, but it was like they forgot about the service for 1 year.

Make sure you are looking at the date of the bill and not necessarily the date of the service.

[30Rock]

The bill was originally issued in 2009. The statement issued in 2010 still shows the amount due.

[masteff]

Similar discussion in this thread starting at post #13: http://benefitslink.com/boards/index.php?showtopic=43340

[Guest Serena]

I have one where the funeral/burial occurred in 1999 and a portion is still unpaid. I think this is too old, and in addition, it occured before funeral expenses were even included as a safe harbor hardship. I think the rules changed in 2005 or 2006. Should I assume the new rules mean funerals expenses incurred after this date? Otherwise you could go way back in time!