Tax
Apr. 13, 2017
IRS memos aren't final word on 401(k) hardship distributions
Employers and plan administrators may not rely on or cite the IRS memorandum as legal authority — it is not a pronouncement of law. By Edward M. Bernard and Elizabeth J. Masson
Edward M. Bernard
partner
Hanson Bridgett LLP
labor & employment, taxation
425 Market St 26th Fl
San Francisco , CA 94105
Phone: (415) 995-5807
Fax: (415) 995-3527
McGeorge
Edward M. Bernard, a partner at Hanson Bridgett LLP, advises public and private employers and employee benefit plans on all aspects of plan design, implementation, administration, and tax, regulatory and fiduciary compliance.
Distributions from employer-sponsored 401(k) plans are generally limited by Internal Revenue Service rules to certain events, such as termination of employment, death or attainment of age 59.5. Under these rules, a 401(k) plan may also allow an employee to take a "hardship" distribution from his or her accumulated elective deferrals to help with an immediate and heavy financial need, if certai...
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