Nassau Posted November 30, 2011 Posted November 30, 2011 When someone takes a hardship withdrawal and the plan has other related plans at the current trustee and recordkeeper, should the participant be suspended from making contributions to the other plans at that recordkeeper/trustee? What if one of the other plans is a nonqualified plan?
ETA Consulting LLC Posted November 30, 2011 Posted November 30, 2011 No. Typically, nonqualified deferred compensation plans are contractual where the employer and the employee agree to forego salary for a promise a pay a certain amount at a future date subject to certain contengencies. This would not interefere with a hardship distribution suspension within a qualified plan as there is no longer an "election" to contribute by the employee. Good Luck! CPC, QPA, QKA, TGPC, ERPA
masteff Posted November 30, 2011 Posted November 30, 2011 Prior discussion: http://benefitslink.com/boards/index.php?showtopic=38998 http://benefitslink.com/boards/index.php?showtopic=37848 Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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