Hardship Distribution from frozen 401(k) plan..are 403(b) contributions suspended?

[Guest mmaggs]

A participant has a historical frozen 401(k), and a current 403(b) to which she is making contributions. She takes a hardship distribution from the frozen 401(k) (only loans, hardships and 59.5s are allowed out of this plan for actives). Is she now suspended from making contributions to the current 403(b)?

[ETA Consulting LLC]

Yes. You must suspend the employee contributions under all plans of the employer.

Good Luck!

[QDROphile]

The response reasonably assumes the tha 401(k) plan uses the safe harbor for hardship distributions and that the same employer sposors both palns. If you don't like the answer, consider amending the hardship provisions to avoid the suspension.