Feds crack down on 401(k) hardship withdrawals — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Feds crack down on 401(k) hardship withdrawals

Get PDF file

by on
in Compensation and Benefits,Human Resources

Both the IRS and U.S. Department of Labor are increasing their enforcement scrutiny on companies that allow em­­ploy­­ees to take inappropriate hardship withdrawals from their 401(k) plans.

Advice: Take a moment to make sure your process for hardship withdrawals is in line with government guidelines. Key points: Elective deferrals should generally be suspended before the withdrawal is taken. Plan documents should specifically spell out the criteria you use to make hardship determinations.

Read more tips.

Leave a Comment

 

Previous post:

Next post: