Distributions via plan hardship withdrawals have been around for a while. However, recent laws and proposed regulations have altered the landscape. Perhaps the best way to delve into this recently revised topic is to focus on the hardship withdrawal rules that have been in effect for many years and continue to be in effect. Then we will look at recent alterations. In addition, we will examine the rules from two perspectives. Our primary focus will be on some examples that illustrate the current state of the rules as they apply to individual clients. However, we will also identify considerations that plan sponsors should be contemplating.
Kenn Beam Tacchino, JD, LLM, is a professor of taxation and financial planning at Widener University in Chester, PA. Professor Tacchino has won awards for both his teaching and his scholarly writing. Among other consulting activities, he conducts retirement planning seminars for employee groups.