Hardship distributions: Lost retirement savings or safety valve for employees?

February 2010
Employee Benefit News;Feb2010, Vol. 24 Issue 2, p35
The article explains the two views about hardship distribution loans which , on one hand, is seen as lost retirement savings, and the other as a safety valve. It clarifies the rules on the hardship distribution provisions under the 401(k) retirement savings plan for employers to avoid compliance problems. It points out that until the economy improves, employers will have to deal with loans that come from hardship distribution sections of the 401(k) plan. It gives suggestions on how employers should handle hardship distributions properly.


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