Participant in PSP applied for a hardship distribution in June '04 on basis that house payment was behind and bank might foreclose. Participant again applied for a hardship distribution on the same basis in january '05. Now participant is back again presumably for another hardship distribution for the same reasons. The plan doc does not contain any restrictions on the number of hardship distributions that one can apply for. Assuming the participant can produce some documentation to the effect that the bank is going to foreclose or that the house payment is otherwise late, does anyone see a problem with the plan making the distribution? The only restriction that would be applicable is that the PSP is holding funds from a merged MPPP and no hardship is allowed from those funds.....

Plans frequently limit the number of hardships available in a year for exactly this reason, but there is no legal reason to limit hardships if the plan does not.