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.