Hardship distribution from a merging plan

[kwalified]

Plan A will be merged with Plan B. The assets are to be merged prior to year end. Participants in Plan A are now participating in Plan B. Can a participant in Plan A be granted a hardship? Their plan does allow for hardships.

[ETA Consulting LLC]

So, you're asking if the participant is part of a plan that provides for hardships, can they be granted one? I know I'm missing something, but what is the question?

99.9997% of the time, you are safe following the terms of the plan. The other 3 out of a million, the plan may contain language that is inconsistent with the Regulations, and you would then follow the Regulations.

Good Luck!

[kwalified]

Can a participant in Plan A receive a hardship from Plan A? Plan A is not frozen, but no new money is going into it except loan payments.

[Lou S.]

Does Plan A allow for Hardships?

Does the participant qualify for a hardship under the definition of Hardship in Plan A?

If the answer to both of these questions is yes, why wouldn't the participant be able to take a hardship?

[kwalified]

Yes and yes.

I felt the answer was affirmative and that the participant will not be allowed to defer in Plan B for 6 months.