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
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Feds crack down on 401(k) hardship withdrawals

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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.

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