Hardship Withdrawal

[Nassau]

During the period of 04/2011 through 09/2011, the plan was using the self certify method for hardship withdrawals. As the participant is processing the request via the web or participant services, it is communicated that upon request, the plan can request the backup documentation for the hardship taken at any time. There is a participant in question that cannot produce the necessary backup, so the client is requesting that the participant pay back the hardship amount. Our question is: For what amount is the participant responsible for paying back, the gross or net amount of the distribution? Also, if this amount is paid back to Vanguard, into what source should this be accepted into?

[ETA Consulting LLC]

During the period of 04/2011 through 09/2011, the plan was using the self certify method for hardship withdrawals. As the participant is processing the request via the web or participant services, it is communicated that upon request, the plan can request the backup documentation for the hardship taken at any time. There is a participant in question that cannot produce the necessary backup, so the client is requesting that the participant pay back the hardship amount. Our question is: For what amount is the participant responsible for paying back, the gross or net amount of the distribution? Also, if this amount is paid back to Vanguard, into what source should this be accepted into?

When you're attempting to correct something that shouldn't have happened, your goal is to make the plan whole; so basically you're undoing everything that was done to the closest extent possible. This means the entire amount goes back to the exact sources it came from. Not addressing the actual situation here, but just the general rule on corrections.

Good Luck!