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Does a hardship withrawal from a 403(b)plan require stopping the curre

Guest ronc

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If one of our 457 members receives a hardship withdrawal from a 403(B), must we stop his deferral to our 457 plan?

At one time we were part of a university, however, when we split away, we froze our employees' participation in the university's 403(b)and began our 457 plan.

One of our employees has applied for a hardship withdrawal from the 403(B) but not from the 457. (1) He has more funds in the 403(B) and (2) his request meets the 403(B) hardship withdrawal guidelines but not the more restrictive 457 guidelines.

If he were to be approved for a 457 emergency hardship withdrawal, we would stop his current deferrals. But, we cannot find any information on whether a similar withdrawal (from another plan) would have the same requirement.

Are we required to stop his current deferrals.

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  • 2 weeks later...
Guest Brent Rowell

I would think the employee would stop the 457 contributions.

1) Probably needs the money

2) If not I believe IRS would have grounds to challenge 403(B) hardship status

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