Which Optional Distributions Can Rely on Participant Self Certification?

Q: Can you tell me which of the optional distribution provisions impacted or created by the SECURE 2.0 Act allow for participant self-certification and which do not?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Absolutely! For certain optional distribution provisions such as emergency personal expense distributions, domestic abuse victim distributions, hardship distributions, unforeseeable emergency distributions, and disaster distributions, participants can generally provide written certification that they satisfy certain conditions for the distribution.

On the other hand, qualified long-term care distributions and terminal illness distributions generally cannot be self-certified.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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