Haven’t finished digesting the Tax Cuts and Jobs Act, the tax reform legislation signed into law late in 2017? Well, how about a side of Bipartisan Budget Reconciliation Act of 2018 (P.L. 115-123) to make everything go down a bit easier?
That law, which President Trump signed Feb. 9, averts another government shutdown, extends some expired tax provisions (noprovisions were included), picks up some 401(k) provisions that were stripped from the TCJA and provides additional disaster relief.
TCJA leftovers: Hardship distributions
The TCJA left provisions regarding 401(k) plans on the cutting room floor. The Bipartisan Budget Reconciliation Act picks up three important provisions regarding hardship distributions. Key: Hardship distributions are still discretionary with plans.
Prohibition on contributions: Financial hardship is supposed to mean just that. So plans that allow employees to take hardship distributions...(register to read more)