Plans which permit non-safe harbor hardship distributions could theoretically approve a participant’s hardship distribution request for the repayment of student loans, but those relying on the safe harbor cannot.
Tag: retirement plan loans
The suit challenges fees paid to provider TIAA.
A federal district court judge agreed that TIAA is not a fiduciary with respect to the design of its participant loan program or its negotiations about fees with Washington University.
Among other things, the bill allows for hardship withdrawals from more contribution types.
Data shows that only 20% of people 65 and older were in the workforce in 2016, yet 56% of workers plan to continue to work, at least part-time, in retirement due to inadequate savings, the Transamerica Center for Retirement Studies found.
The agency has relaxed loan and hardship distribution rules.
The act, signed into law last week, allows tax-penalty-free withdrawals and larger loan amounts from retirement accounts than current statutory limits.
“I have a question regarding the ‘cure’ period after which a retirement plan loan would go into default in relation to a military leave of absence.