limit on 401(k) con after hardship withdrawal?

[Guest FREE401k]

When a 401(k) Plan participant takes a hardship withdrawal, I know they are not allowed to contribute to the Plan for one year. After the year is up and they start contributing again, doesn't their con amount have to be limited in some way? And if this is true, where can I find it in the regs?

[Bob R]

I don't have the regulations in front of me, but the limit should be somewhere in 1.401(k)-1(d). FYI, the limit is the annual limit ($10,500 for 2001) reduced by the deferrals made by the individual in the prior year. So, if the person deferred $5,000 in 2000, then once the 12 month suspension period is over, the most that can be deferred for the remainder of the calendar year is $5,500.

[MWeddell]

Also take a look at your plan document. The rules you've discussed are part of some "safe harbor" hardship withdrawal requirements and do not apply if your plan uses the general resources test.