401(k) Hardship Distributions

[Guest marykd]

Is there a rule or regulation specifying how long a 401(k) plan may take to grant or deny an application for a hardship distribution?

[Kevin C]

There are DOL regulations setting the minimum requirements for a plan's claims procedure. You will want information on the plan's claims procedure, which is required to be included in the Summary Plan Description. If you are a participant in the plan and don't have a copy of the SPD, ask your employer for one.

[rcline46]

It may be a matter of anticipation. We publish a 'standard' of 10 to 15 business days to process any distribution, even though our turnaround time is quicker than that. However, if we receive forms not countersigned by a proper person from the employer/Plan Administrator, the form must be sent back for signatures and consequently, the process could be delayed.

You should check with your HR/Plan Administrator first to determine the expected time, and follow up with them for timing.

[Guest marykd]

Thank you both for your help!