DTH Posted July 23, 2014 Posted July 23, 2014 A governmental 457(b) plan permits participant loans and unforeseeable emergency withdrawals. Must a participant take a loan from the 457(b) plan first before they can request an unforeseeable emergency withdrawal (assuming the loan does not cause a hardship).
John Feldt ERPA CPC QPA Posted July 23, 2014 Posted July 23, 2014 No, unless the plan document is written to add that as a requirement.
masteff Posted July 23, 2014 Posted July 23, 2014 A couple links for you... Rev Rul 2010-27 http://www.irs.gov/irb/2010-45_IRB/ar09.html Reg 1.457-6 http://www.ecfr.gov/cgi-bin/text-idx?SID=ce248eaef2d23fe09d2c0a22ecc9da7a&node=26:6.0.1.1.1.0.5.61&rgn=div8 Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
DTH Posted July 23, 2014 Author Posted July 23, 2014 Thank you all. I had looked at the Treasury regulations and the Revenue Ruling but they did not specify. I had also looked at a few vendor forms online and the forms said that the participant had to take a plan loan first but their specimen plan document has the same unforeseeable emergency standard language as the regulations. It is possible that the restiction could be in a seprate Participant Loan Program the vendor suppied the employer.
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