Safe Harbor Contributions

[Nassau]

Are safe harbor contributions available to be withdrawn for a in-service Disability Withdrawal?

[PensionPro]

yes if provided in document and disability meets plan's definition

[Nassau]

But I thought that safe harbor contributions follow pre-tax contributions and could not be withdrawn before age 59 1/2 ?

[rcline46]

^{Disability implies a disability termination. Otherwise, what is meant by a 'disability withdrawal'? It is not one of the enumerated distributable events in the code.}

[PensionPro]

You are correct to the extent that safe harbor contributions have for the most part the same restrictions as deferrals. However see IRC §401(k)(2)(B)(i)(I).

[PensionPro]

^{Disability implies a disability termination. Otherwise, what is meant by a 'disability withdrawal'? It is not one of the enumerated distributable events in the code.}

Per §72(m)(7) "an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration."

Goes back to the question, how does the plan define disability. One thing is clear that if it is a hardship distribution, it is not allowed.

[Nassau]

So are safe harbor contributions available to be withdrawn for an in-service Disability Withdrawal?

An in-service disability withdrawal means the participant is not terminated but he or she is on a short or long term disability and is currently not working for the company but he or she is permitted to take an in-service disability withdrawal from the plan.