rblum50 Posted July 21, 2021 Posted July 21, 2021 Simple question, a 401(k) Plan only allows for salary deferrals and a 401(k) ADP Safe Harbor Match. If eligible and assuming no outstanding loans and the total amount in his account meets the amount of his financial need, can the participant take a hardship distribution of 100% of each account?
ratherbereading Posted July 22, 2021 Posted July 22, 2021 What does the plan document say? Having an outstanding loan doesn't mean you can't have a hardship. 4 out of 3 people struggle with math
David Schultz Posted July 26, 2021 Posted July 26, 2021 The plan document can limit the maximum amount of (or the reasons for obtaining) a hardship distribution. Assuming the document imposes no unexpected limitations, there is no limit on the percentage of the participant's vested account balance that can be distributed on account of a hardship.
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