Impact of New Hardship Withdrawal Provisions

“In February 2018, Congress amended the hardship withdrawal rules for 401(k) plans effective January 1, 2019. In September 2019, the IRS finalized its rules on how plan sponsors must amend their plans to comply. In October, PSCA conducted a brief survey of plan sponsors to determine their thoughts on the new rules, actions taken to comply with those new requirements, and whether companies are seeing a change in the number and frequency of hardship withdrawals.” Click here to read survey responses.

Source: Plan Sponsor Council of America (PSCA)