The IRS has updated their web page related to hardship distributions from a 401(k) based on changes made by the Bipartisan Budget Act of 2018.

Beginning in 2019, hardship distributions may be made from elective deferrals, qualified nonelective contributions (QNECs), qualified matching contributions (QMACs), and earnings attributable to any of those.

Also effective in 2019, a participant is no longer prohibited from making elective deferrals in the six month period following the receipt of a hardship distribution. Additionally, the participant is not required to take all available plan loans prior to requesting the hardship distribution.

These changes are already in effect. Thus, plan sponsors should already be in compliance. Please contact your NFP advisor with any questions.

IRS Issue Snapshot – Hardship Distributions from 401(k) Plans »

Source: NFP BenefitsPartners