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    IRS Now Allows Additional Hardship Withdrawals

    The recent final 401(k) rules have added two new safe harbor withdrawal reasons:  1) burial/funeral expenses and 2) repair of certain types of damage to an employee's principal residence.  If your plan document lists the reasons for hardship withdrawal to include "any other event that the IRS recognizes as a safe harbor," then no plan amendment is necessary to add these additional reasons to allow hardship withdrawals.  You may allow withdrawals for these two additional reasons beginning the first day of the plan's 2006 plan year.  Contact Attorney Faye Witt with any questions at fmw@hanftlaw.com or 218.529.2428.


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