Roth included in basis if doc excludes roth from h/s dist

[Guest isg2013]

Hello,

If the plan doc allows hardship from only pre-tax deferrals, can Roth deferrals be used as a basis to calculate the max hardship available?

$1000 pre tax contrib

$1000 roth contrib

the max hardship (assume need is $3000) is $1000?

internal discussion that it would be $2000. how could $$ be taken from a source (roth) that doesn't allow for h/s and participant is not 59.5 ? and the account balance is below $2000 in the pre-tax account.

Thanks

[ETA Consulting LLC]

Sure it can. The same principle is tied to loans. There is only one calculation made when determining the amount that 'may be' taken. You, then, compare that limit to the amount in the source you want to receive funds from. You may take 100% from that source, even though the limit was applied to money that was actually deposited in other sources.

Good Luck!

[Guest isg2013]

If h/s was allowed from match source but not P/s, for the basis calculation we'd include the p/s but culd only w/d from the pre-tax and match sources?

Thanks fo ryour input

[Bird]

Are you saying that you could take pre-tax earnings on deferrals out because you'd theoretically be using the basis from another source? I don't think so...$1000 would be the limit, IMO. It's not like a loan.