Hardship Distributions from Rollover Accounts; Inquiry If Allowed for Discretionary Contributions

I inquire if hardship distributions may occur from rollover accounts and/or Roth rollover accounts. Also, I inquire if hardship distributions may proceed from discretionary contributions. 

§ 401(k)(14):

26 USC 401: Qualified pension, profit-sharing, and stock bonus plans (house.gov)

(14) Special rules relating to hardship withdrawals
For purposes of paragraph (2)(B)(i)(IV)-

(A) Amounts which may be withdrawn
The following amounts may be distributed upon hardship of the employee:

(i) Contributions to a profit-sharing or stock bonus plan to which section 402(e)(3) applies.

(ii) Qualified nonelective contributions (as defined in subsection (m)(4)(C)).

(iii) Qualified matching contributions described in paragraph (3)(D)(ii)(I).

(iv) Earnings on any contributions described in clause (i), (ii), or (iii).

§ 402(e)(3)

https://uscode.house.gov/view.xhtml?req=(title:26 section:402 edition:prelim) OR (granuleid:USC-prelim-title26-section402)&f=treesort&edition=prelim&num=0&jumpTo=true#substructure-location_e_3

(3) Cash or deferred arrangements
For purposes of this title, contributions made by an employer on behalf of an employee to a trust which is a part of a qualified cash or deferred arrangement (as defined in section 401(k)(2)) or which is part of a salary reduction agreement under section 403(b) shall not be treated as distributed or made available to the employee nor as contributions made to the trust by the employee merely because the arrangement includes provisions under which the employee has an election whether the contribution will be made to the trust or received by the employee in cash.

Does the plan use a pre-approved document? If so most have a section on which sources are available for hardship. Do the regs allow it? yes. But the plan document has to also allow it, as it is not a required provision. The plan can restrict hardship, including sources, which is common for sources that are not 100% vested even if hardship is otherwise allowed. 

Most also have a section that specifically addresses distributions from Rollover sources. A decent number of plans allow distributions from Rollover money at any time, no hardship required. So if a participant has rollover money, they can just take a regular withdrawal and it doesn't matter if it is for hardship or not. The tax impact (though not the withholding) is the same. If they don't want withholding they could always roll it over to an IRA and then take the distribution from there. 

Hardships are not eligible for rollover so the 20% mandatory withholding does not apply to them but otherwise agree with justanotheradim.

Also some plans allow in-service distribution of rollover accounts for any reason at any time and would not require a hardship event but could be used to satisfy one, but read the document as again that is an optional provision. Also that would be eligible for rollover and would be subject to 20% mandatory withholding.