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Posted

An employee is stating the recent legislation (Bipartison Budget Act of 2018) allows the participant to request a hardship for elementary and high school education expenses.  Am I correct that we are still waiting for IRS guidance on the Bipartison Budget Act of 2018, it's not effective until 2019, and plan amendments would need to be put in place to make the applicable changes?

Posted

Correct.  The document providers are usually very responsive to legislative changes.  When it comes to hardships, the plan isn't even required to allow them.  So, until the plan is amended, I'd continue to follow the current written terms.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

Posted

Correct on all points.   It is not effective yet and plans will have to be amended to incorporate the new rule when it is. (I am not looking forward to the latter!)  And, finally, as has been pointed out by ETA ...LLC,  the plan document prevails!

Patricia Neal Jensen, JD

Vice President and Nonprofit Practice Leader

|Future Plan, an Ascensus Company

21031 Ventura Blvd., 12th Floor

Woodland Hills, CA 91364

E patricia.jensen@futureplan.com

P 949-325-6727

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