BenefitsLink Message Boards > hardship question

BenefitsLink Message Boards > Retirement Plans > Distributions and Loans, Other than QDROs

nynaeve

Feb 6 2009, 02:26 PM

I know I should be better at searching, but I never seem to have much luck with the search engine.

After a hardship withdrawal, pre-tax contributions are suspended for 6 months. Do Roth contributions also need to be stopped? Can someone please direct me to some documentation on this issue? Thank you so much for your help.

rcline46

Feb 6 2009, 03:03 PM

The Safe Harbor hardship rules require employee contributions to be suspended for 6 months. That includes voluntary contributions and elective deferrals. Elective deferrals can be either pre or post tax, so that means Roth is also stopped.

Kevin C

Feb 6 2009, 03:49 PM

Will this work for documentation?

QUOTE

1.401(k)-1(f)(4) Designated Roth contributions must satisfy rules applicable to elective contributions

(i) In general. --A designated Roth contribution must satisfy the requirements applicable to elective contributions made under a qualified cash or deferred arrangement. Thus, for example, a designated Roth contribution must satisfy the requirements of paragraphs (c) and (d) of this section and is treated as an employer contribution for purposes of sections 401(a), 401(k), 402, 404, 409, 411, 412, 415, 416 and 417. In addition, the designated Roth contributions are treated as elective contributions for purposes of the ADP test. Similarly, the designated Roth account under the plan is subject to the rules of section 401(a)(9)(A) and (B) in the same manner as an account that contains pre-tax elective contributions.

This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.