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Posted

Following the passage of the Bipartisan Budget Act, plan sponsor agreed to adopt recordkeeper's recommended best practices, which included offering an option to any participant who is on hardship withdrawal suspension to end that suspension early. However, no one ever notified the one participant who fell into this category. Is this a missed deferral opportunity that needs to be corrected?

Dog

Posted

Probably only if the plan sponsor took what amounts to sufficient corporate (or other, depending on their form of organization) to actually adopt the recommendation, which would typically require resolutions of some sort, with or without a proffered amendment. If not, then they just thought about it and never did it. All will depend on facts and circumstances. If a sole proprietorship, could be in LaLa Land as to whether adopted or not.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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