IRS Will Now Permit DC Plan Hardship Withdrawal Self-Certification Summaries

By Maggie McTigue on April 6, 2017

Posted In Employee Benefits, Retirement Plans

Two recently published memoranda by the Internal Revenue Service (the IRS) indicate that it is permissible for 401(k) and 403(b) plan sponsors and their third party administrators (TPAs) to rely on participants’ written summaries describing their financial hardships when processing hardship withdrawals from plans that apply the safe harbor event rules. Plan sponsors and TPAs may find relief from the former time-consuming, manual reviews of participants’ hardship withdrawal documentation.

Read the full article.

Tags: 401(k), 403(b), Internal Revenue Service (IRS), Qualified Matching Contribution (QMAC), Qualified Non-Elective Contribution (QNEC), Safe Harbor, Third Party Administrators (TPAs)

Maggie McTigue
Maggie McTigue focuses her practice on employee benefits matters relating to pension and 401(k) plans, executive compensation, and health and welfare benefit plans. She regularly assists clients with employee benefit plan filings and notices required by the Department of Labor and the Internal Revenue Service. Maggie also has experience regarding plan investment issues under the Employee Retirement Income Security Act of 1974 (ERISA). Read Maggie McTigue's full bio.

IRS Will Now Permit DC Plan Hardship Withdrawal Self-Certification Summaries

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