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- Title
Recent Ruling Highlights the Different Meanings of "Financial Hardship" and "Unforeseen Emergency".
- Authors
Commito, Thomas F.
- Abstract
In looking at making a "hardship distribution" from a retirement plan, it is important to note what type of plan is providing the benefit, since the rules are different for different plans. The 401(k) rules appear to be the most rigid. For nonqualified plans, on the surface the rules seem somewhat similar. However, with the "similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the service provider" provision existing in the nonqualified plan area, coupled with the IRS's liberal interpretation of the provision in Revenue Ruling 2010-27, the nonqualified area for hardship distributions seems to be wide and flexible, particularly when compared with the 401(k) rules.
- Subjects
UNITED States; 401(K) plans; HARDSHIP; PENSIONS; NONQUALIFIED pension plans; PENSION laws; UNITED States. Internal Revenue Service
- Publication
Journal of Financial Service Professionals, 2011, Vol 65, Issue 2, p10
- ISSN
1537-1816
- Publication type
Article