We recently came across a money purchase
plan that offers both loans and hardship withdrawals.
The process is identical to that used by a 401(k)
plan.
Is this legal? I thought these plans were not permitted
to make in-service withdrawals.
wmyer
Feb 4 2005, 10:11 AM
Money purchase plans are able to offer loans. However, they shouldn't offer hardship withdrawals...is it a non-ERISA plan or something?
No, it is a qualified plan.
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