If a plan requires that a participant's deferral contributions get suspended for a twleve month period after they take a hardship distribution and allows for multiple distributions in a twelve month period, how is the suspension of deferrals handled? For example: Jane Doe takes a hardship withdrawal in 8/98 to pay for her daughter's tuition for college and takes a second hardship in 2/99 to pay for unexpected medical fees. She suspended her contribuitons to the 401(k) plan effective 8/98. Does her hardship suspension end 8/99 or is it extended to 2/2000? Thanks.

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AOlson

I would think the suspension extends to 2/2000 (ie, you have to apply the suspension rules to each hardship distribution).

Thanks. That is what we thought.

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AOlson