lydia33 Posted November 24, 2008 Report Share Posted November 24, 2008 Can an employer set up a 401k plan where the only way to get your money out of it is to quit or retire? The only hardship clause I see it the write-up of their plan is permanent disability. Quote Link to comment Share on other sites More sharing options...
jainen Posted November 24, 2008 Report Share Posted November 24, 2008 >>the write-up of their plan<< The actual plan document, not just a "write up," must be made available to the employees. Ask to see it, along with the IRS determination letter that approved it. I guess the plan can prohibit hardship distributions, but it would be a very odd provision to include in what is supposed to be a benefit package. Besides upsetting the employees, it would require a customized plan which would be more expensive to draft and have a much higher chance of failing to qualify. Quote Link to comment Share on other sites More sharing options...
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