20% income tax withholding

[Guest Tamra]

I read in a 1992 PPD ERISA Newsletter

that in 1993 Congress was expected to

enact technical corrections that would

include an exception to the 20% withholding requirement on certain hardship distributions. Any news on this? 20% still required for these distributions?

[Tom Poje]

my apologies for not responding sooner. I wanted to find the code section

402©(4)© refers "To any hardship distribution described in section 401(k)(2)(B)(i)(IV)" as no longer being an eligible rollover distribution.

Thus, it appears, only deferral hardship distribution are not subject to the 20% withholding.