Employer Administrative Elections - Rules for Hardship Distributions

The following administrative elections record Washington and Lee University's ("the University") elections/rules regarding hardship distributions from its Defined Contribution Plan, effective January 1, 2009.

A. Hardship Distributions:

  • Hardship distributions are permitted to the extent allowed by the Adoption Agreement and the Individual Agreement.
  • All hardship distributions must comply with Treasury Regulation Section 1.401(k)-1(d)(3), conforming to the safe harbor need/purpose and safe harbor necessity/amount rules, as provided for in Section 6.07 of the Basic Plan Document.
  • Hardship requests are not limited to one per year unless the applicable funding vehicle (Individual Agreement) imposes such a limitation.
  • Contracts cannot be surrendered for financial hardship; neither are contract earnings available for withdrawal. Only employee contributions may be withdrawn.
  • A participant's elective deferrals to the University's Defined Contribution Plan will be suspended for six months upon a hardship distribution.
  • All hardship distributions are reported on Form 1099R to the Internal Revenue Service.
  • Participants making a hardship request must retain documentation to support the claim of a financial hardship and provide such documentation as required by the University in reviewing the hardship request.
  • The University and TIAA or Fidelity will exchange information to the extent necessary to implement hardship provisions.
  • A University Statement of Conditions/Required Documentation for Hardship Withdrawals and an Employee Certificate is attached, which will be provided to all employees making hardship withdrawal requests.
  • Hardship requests require the advance authorization of the University