close
Share with your friends

Amendments relating to hardship distributions from section 401(k) plans

Hardship distributions from section 401(k) plans

The U.S. Treasury Department and IRS today released for publication in the Federal Register proposed regulations containing amendments to the regulations relating to hardship distributions from section 401(k) plans.

1000

Related content

The proposed regulations [PDF 213 KB] reflect statutory changes affecting section 401(k) plans, including recent changes made by the Bipartisan Budget Act of 2018. These regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of plans that contain cash or deferred arrangements or provide for employee or matching contributions.

The proposed regulations update the section 401(k) and (m) regulations to reflect: 

  • The enactment of:
    • Sections 41113 and 41114 of the Bipartisan Budget Act of 2018
    • Sections 826 and 827 of the Pension Protection Act of 2006
    • Section 105(b)(1)(A) of the Heroes Earnings Assistance and Relief Tax Act of 2008
  • The application of the hardship distribution rules in light of the modification to the casualty loss deduction rules made by section 11044 of the new U.S. tax law (Pub. L. No. 115-97, often referred to as the “Tax Cuts and Jobs Act”)

The purpose of this report is to provide text of the proposed regulations.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal