Hardship Dist Eligibility (sad case)

[Basically]

A young plan participant wanted to take a loan from the plan.  Unfortunately, the plan does not allow loans.  He then asked if he could take a hardship dist.  Yesterday I spoke to my contact at the business who explained the situation.  This mid 30s guy was raised by his grandparents.  His grandfather has since passed and now it is just he and his grandmother.  Sadly, she has dementia (giving away her monthly SS check $, must be with someone 24/7).  This young participant is in the process of legally obtaining conservatorship but as it stands right now, she is not his dependent.   Does that matter?  There certainly is a paper trail of him caring for  her.  Anyone see an issue here allowing a hardship dist?

Thanks

[Peter Gulia]

What amount does the participant seek?  What expense does the participant claim as his (perhaps including his grandmother's) hardship need?

A conservatorship by itself might not make the incapacitated person the conservator's dependent.

If the plan provides the Treasury regulations' deemed hardship needs, some of them might apply regarding the participant's primary beneficiary's expenses.

This is not advice to anyone.