Plan Distributions Are on the Rise
In this issue:
The primary goal of a retirement plan is to accumulate savings to provide income after retirement. Most plans also allow distributions before retirement age for a number of circumstances, including termination of employment and financial hardship. Non-taxable participant loans may also be an option.
Not surprisingly, plan administrators have witnessed an increase in the number of withdrawal requests over the past year as a result of the difficult economic times in which we live. Hardship distributions and plan loans are on the rise, as employees struggle to keep up with mortgage payments or put children through college.
This article will review the different types of withdrawals available in a qualified plan and the rules that apply.
This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.