Hardship Withdrawals. If elected in the Adoption Agreement, a Participant may request a Hardship withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules: (a) For purposes of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution. (b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following: (1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents; (2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant; (3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)]; (4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer: (5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or (6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income). (c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended under 6.11(a)(3) above, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution. (d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals. (e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death. (f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇. (1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years. (2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution. (3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans. (4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Defined Contribution Plan (1st Constitution Bancorp)
Hardship Withdrawals. If elected in the Adoption Agreement, a Participant may request a Hardship withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules:
(a) For purposes of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended withdrawn under 6.11(a)(36.11(b) above, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will shall apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Defined Contribution Plan (Wellesley Bancorp, Inc.)
Hardship Withdrawals. If elected (a) In accordance with the Employer's election to provide hardship withdrawals in the Adoption Agreement, a Participant may request a Hardship withdrawal of all or part of the contributions allocated to such Participant's account attributable to Elective Salary Deferrals, exclusive of any earnings ("Elective Salary Deferral Amounts"), subject to the restrictions described in section 6.12(b).
(b) The Plan Administrator will consent to the withdrawal only if the request, in the Plan Administrator's sole discretion, is necessary in light of the immediate and heavy financial need of the Participant, the withdrawal request does not exceed the Participant's need and the Participant cannot obtain the funds from any other reasonably available resource. The Plan Administrator will make the determination according to written procedures applied in a uniform and nondiscriminatory manner.
(1) The Plan Administrator will deem a request as provided made to meet an immediate and heavy financial need of the Participant if the funds withdrawn will be used for expenses incurred or necessary for:
(A) Medical care, as described in this paragraphCode section 213(d), for the Employee, the Employee's spouse, children or dependents;
(B) The purchase (excluding mortgage payments) of a principal residence for the Employee;
(C) Payment of tuition and related educational fees for the next 12 months of post-secondary education for the Employee, the Employee's spouse, children or dependents; or
(D) The need to prevent eviction of the Employee from, or a foreclosure on the mortgage of, the Employee's principal residence.
(2) The Plan Administrator will treat a distribution as necessary to satisfy an immediate and heavy financial need of the Employee only if:
(A) The Employee has obtained all distributions, other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer;
(B) All plans maintained by the Employer provide that the Employee's Elective Salary Deferrals (and Voluntary After-Tax Contributions) will be suspended for 12 months after the receipt of the hardship distribution;
(C) The distribution does not exceed the amount of the immediate and heavy financial need (including amounts necessary to pay federal, state and local income taxes or penalties that the Employee reasonably anticipates will result from the distribution); and
(D) All plans maintained by the Employer limit the amount of Elective Salary Deferrals that the Employee may make for the calendar year that immediately follows the year in which the Employee obtains a hardship distribution. If applicableThe preceding limit is equal to the applicable limit under Code section 402(g) for such calendar year, less the amount of the Employee's Elective Salary Deferrals for the calendar year in which the hardship distribution is made.
(3) The person designated to direct investment will determine which assets must be liquidated in order to fund a withdrawal.
(4) Hardship withdrawals are subject to the spousal consent requirements in Code Sections sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules:
(a) For purposes of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended under 6.11(a)(3) above, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Hardship Withdrawals. If elected in the Adoption AgreementApplication for Hardship Withdrawal Prior to January 1, 1989. For Plan Years beginning before January 1, 1989, a Participant who is an Eligible Employee and who is suffering a qualifying financial hardship may request apply for a Hardship withdrawal as provided in this paragraphhardship distribution from his or her Accounts by filing a written application for the same with the Committee stating the amount of the distribution requested and the qualifying financial hardship. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must Such application may be consented to approved by the Committee only if the Committee determines that the distribution applied for is necessary in light of a financial need of the Participant which (A) is currently payable, (B) is extraordinary, (C) threatens the financial security of the Participant's Spouse unless , and (D) is caused by the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected qualifying financial hardship cited in the Adoption Agreement, a Participant shall application. The amount approved hereunder may not exceed (but may be permitted less than) the amount the Committee determines is required to make a Hardship withdrawal of any amount attributable to meet the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (immediate financial need created by the qualifying financial hardship cited in the application and any earnings credited to a Participant’s account as which is not reasonably available from other resources of the later Participant and shall not exceed any limit on hardship withdrawals established by the Committee in its discretion to protect the benefits of December 31, 1988, and the end Participants. The Committee's determination of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment existence of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists caused by a qualifying financial hardship and the withdrawal is necessary amount required to satisfy meet the need created by such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request hardship shall be made in accordance a uniform and nondiscriminatory manner with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority respect to authorize and direct all Participants applying for a Hardship withdrawal pursuant to the following rules:
(a) For purposes of distribution under this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstancesSection. For purposes of this paragraphSection, the term "qualifying financial hardship" means a financial hardship resulting from (i) the unexpected expenses incurred in connection with the illness or death of the Participant, the Participant’s resources are deemed to include those assets 's spouse, the children or grandchildren of either the Participant or the Participant’s Spouse and minor children that are reasonably available 's spouse, or the parents of either the Participant or the Participant's spouse, (ii) post-secondary school educational expenses for the coming semester incurred with respect to the Participant. However, property held for the Participant’s child under an irrevocable trust 's spouse or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If 's dependents, for which purposes off-campus room and board expenses shall only be allowable up to the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise amount which would have been charged by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for educational institution (or, if the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s accounteducational institution does not provide room and board, unless otherwise provided which would have been charged by a directive from comparable educational institution offering room and board) had the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary Afterstudent lived on-taxcampus, or Required After-tax Contributions are suspended under 6.11(a)(3(iii) abovethe expenses incurred in connection with purchasing, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In additionadding an addition to, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply making structural modifications to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death's primary residence.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Employee Investment Plan and Trust Agreement (HFS Inc)
Hardship Withdrawals. If elected in the Adoption Agreement, a Participant may request a Hardship withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's ’s Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ 59 1/2 or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules:
(a) For purposes of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's ’s principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended under 6.11(a)(3) above, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Defined Contribution Plan (Old Dominion Freight Line Inc/Va)
Hardship Withdrawals. If elected in the Adoption Agreement(a) Application for Hardship Withdrawal Prior to January 1, 1989. For Plan Years beginning before January 1, 1989, a Participant who is an Eligible Employee and who is suffering a qualifying financial hardship may request apply for a Hardship withdrawal as provided in this paragraphhardship distribution from his or her Accounts by filing a written application for the same with the Committee stating the amount of the distribution requested and the qualifying financial hardship. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must Such application may be consented to approved by the Committee only if the Committee determines that the distribution applied for is necessary in light of a financial need of the Participant which (A) is currently payable, (B) is extraordinary, (C) threatens the financial security of the Participant's Spouse unless , and (D) is caused by the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected qualifying financial hardship cited in the Adoption Agreement, a Participant shall application. The amount approved hereunder may not exceed (but may be permitted less than) the amount the Committee determines is required to make a Hardship withdrawal of any amount attributable to meet the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (immediate financial need created by the qualifying financial hardship cited in the application and any earnings credited to a Participant’s account as which is not reasonably available from other resources of the later Participant and shall not exceed any limit on hardship withdrawals established by the Committee in its discretion to protect the benefits of December 31, 1988, and the end Participants. The Committee's determination of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment existence of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists caused by a qualifying financial hardship and the withdrawal is necessary amount required to satisfy meet the need created by such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request hardship shall be made in accordance a uniform and nondiscriminatory manner with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority respect to authorize and direct all Participants applying for a Hardship withdrawal pursuant to the following rules:
(a) For purposes of distribution under this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstancesSection. For purposes of this paragraphSection, the term "qualifying financial hardship" means a financial hardship resulting from (i) the unexpected expenses incurred in connection with the illness or death of the Participant, the Participant’s resources are deemed to include those assets 's spouse, the children or grandchildren of either the Participant or the Participant’s Spouse and minor children that are reasonably available 's spouse, or the parents of either the Participant or the Participant's spouse, (ii) post-secondary school educational expenses for the coming semester incurred with respect to the Participant. However, property held for the Participant’s child under an irrevocable trust 's spouse or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If 's dependents, for which purposes off-campus room and board expenses shall only be allowable up to the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise amount which would have been charged by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for educational institution (or, if the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s accounteducational institution does not provide room and board, unless otherwise provided which would have been charged by a directive from comparable educational institution offering room and board) had the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary Afterstudent lived on-taxcampus, or Required After-tax Contributions are suspended under 6.11(a)(3(iii) abovethe expenses incurred in connection with purchasing, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In additionadding an addition to, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distribution.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply making structural modifications to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death's primary residence.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Employee Investment Plan and Trust Agreement (PHH Corp)
Hardship Withdrawals. If elected in the Adoption Agreement, a Participant may request a Hardship withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof8.7. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules:
(a) For purposes of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any event, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents, or primary Beneficiary under the Plan;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)], or primary Beneficiary under the Plan;
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:;
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)], or primary Beneficiary under the Plan; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended withdrawn under 6.11(a)(36.13(b) above, such amounts will be suspended for all plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(gIf an Employee who participates in a QACA is ineligible to make contributions under the Plan for six (6) limit for 2002 does not have to be reduced with respect to a Participant who has received months because of a Hardship distribution in calendar year 2001. In additionwithdrawal and the six (6) month period includes a date as of which the QACA default minimum percentage is increased, for Hardship distributions then the QACA default percentage must reflect that occurred increase when the Participant is permitted to resume contributions unless such Participant has made an affirmative election prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Hardship withdrawal to have Elective Deferrals or ▇▇▇▇ Elective Deferrals for the Employee’s taxable year immediately following the taxable year of the Hardship distribution in excess of the applicable limit under Code Section 402(g) for such taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals for the taxable year of the Hardship distributionwithheld at a different rate.
(d) The Plan Administrator may implement on a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in A Participant’s “primary Beneficiary under the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s ” is an individual named as a Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by under the Plan Administrator. The Beneficiary to which this applies must have who has an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained If provided by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Furtherin an administrative policy, the aggregate amount of Qualified HurricaneEmployer may permit hardship or other in-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received service withdrawals to make a repayment or repayments of said distribution to the Plan Participants (or another Eligible Retirement former Participants with a Vested Account Balance in the Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution when legislation is passed that provides for the purchase of a principal residence may make a repayment or repayments of said distribution to the special Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall distributions that would otherwise not be subject to available or if the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plansIRS issues guidance providing such special relief.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Defined Contribution Plan
Hardship Withdrawals. If elected in the Adoption Agreement, a Participant may request a Hardship A withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject will not be considered to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal be made on account of Hardship must be consented to by the Participant's Spouse “Hardship” unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the following requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Elective Deferrals or ▇▇▇▇ Elective Deferrals (and any earnings credited to a Participant’s account as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due to a Hardship upon request to the Plan Administrator. Such request shall be made in accordance with procedures adopted by the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rulesare met:
(a) For purposes The withdrawal is requested because of this paragraph, an immediate and heavy financial need of the Employee is one which cannot reasonably be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient to satisfy the need. In any eventParticipant, a Hardship distribution may not be requested in excess of the amount of the immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay so deemed if the followingParticipant represents that the withdrawal is made on account of:
(1i) expenses for medical care described in section 213(d) of the Code incurred by the Participant, the Participant’s spouse or any dependent of the Participant (as defined in section 152 of the Code) or necessary for such persons to obtain such medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependentscare;
(2ii) the cost directly related to the purchase (excluding mortgage payments) of the a principal residence of the Participant;
(3iii) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) 12 months of post-secondary education for the Participant, or his or her Spousespouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)]dependents;
(4iv) the need to prevent the eviction of the Participant from, from his principal residence or a foreclosure on the mortgage of, of the Participant's principal ’s residence; The following reasons constituting an or
(v) any other circumstances of immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31identified as such in applicable Treasury regulations, 2005, unless adopted earlier by the Employer:
(5) payments for burial rulings or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair notices of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income)general applicability.
(cb) A distribution is not treated as The withdrawal must also be necessary to satisfy an the immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall and will be made on the basis of so deemed if all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse following requirements are satisfied:
(i) the Participant represents that the distribution is not in excess of the amount of an immediate and minor children that are reasonably heavy financial need;
(ii) the Participant has obtained all distributions (other than hardship withdrawals under this subsection 10.3) and all nontaxable loans currently available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across and all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended under 6.11(a)(3) above, such amounts will be suspended for all other plans maintained by the Employer Related Companies;
(iii) notwithstanding any other than benefits under Code Section 125 plans) provision of the Plan, Before-Tax and Matching Contributions by or on behalf of the Participant shall be suspended for six (6) a period of 12 months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received makes a Hardship distribution withdrawal under this subsection 10.3; and
(iv) in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Elective Deferrals for the EmployeeParticipant’s taxable year immediately following the taxable year of the Hardship distribution in excess withdrawal, the Before-Tax Contributions contributed on behalf of the Participant shall not exceed the applicable limit under Code Section 402(g) subsection 8.6 for such next taxable year less the amount of such Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals Before-Tax Contributions contributed on behalf of the Participant for the taxable year of the Hardship hardship distribution.
(d) The Plan Administrator may implement on a uniform . A Participant shall not fail to be treated as an eligible employee for purposes of subsections 8.8 and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion 8.10 merely because of the Participant’s account balance under the Plan upon the Participant’s deathapplication of this subparagraph 10.3(b)(iv).
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.
Appears in 1 contract
Sources: Hourly Employees Retirement Savings Plan (Gatx Corp)
Hardship Withdrawals. (a) If so elected by the Employer in the Adoption Agreement, distribution of a Participant may request a Hardship withdrawal as provided in this paragraph. If applicable, Hardship withdrawals are subject to the spousal consent requirements in Code Sections 401(a)(11) and 417. A request to make a withdrawal on account of Hardship must be consented to by the Participant's Spouse unless the Plan satisfies the safe harbor provisions under paragraph 8.7 hereof. Spousal consent, if required, shall comply with the requirements of paragraph 6.6 relating to immediate distributions. If elected in the Adoption Agreement, a Participant shall be permitted to make a Hardship withdrawal of any amount attributable to the vested portion of Employee Elective Deferrals or ▇▇▇▇ Elective Deferrals Account (and any including only those earnings credited to a Participant’s account accrued as of the later of December 31, 1988, and the end of the last Plan Year ending before July 1, 1989). Unless elected otherwise in the Adoption Agreement, vested Non-Elective Contributions, Matching Contributions, Rollover Contributions, Transfer Contributions and the income allocable to each (without regard to attainment of age 59½ or Disability) may be available for Hardship withdrawal if the Participant establishes that an immediate and heavy financial need exists and the withdrawal is necessary to satisfy such financial need. A Participant may withdraw all or any part of the fair market value of his or her Voluntary or Required After-tax Contributions due made to a Hardship upon request to Participant in the Plan Administratorevent of hardship. Such request shall be made in accordance with procedures adopted by For the Plan Administrator or his or her designate, who shall have sole authority to authorize and direct a Hardship withdrawal pursuant to the following rules:
(a) For purposes of this paragraphsection, hardship is defined as an immediate and heavy financial need of the Employee is one which cannot reasonably where such Employee lacks other available resources. Hardship distributions are subject to the spousal consent requirements contained in sections 401(a)(11) and 417 of the Code, unless the Employer has made the election described in section 7.10.
(b) The following are the only financial needs considered immediate and heavy: expenses incurred or necessary for medical care described in section 213(d) of the Code, of the Employee, the Employee's spouse, children, or dependents; the purchase (excluding mortgage payments) of a principal residence for the Employee; payment of tuition and related educational fees for the next 12 months of post-secondary education for the Employee, the Employee's spouse, children or dependents; the need to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee's principal residence; and any other financial need deemed by the Commissioner of the Internal Revenue Service to be relieved by borrowing from commercial sources on reasonable commercial terms in an amount sufficient immediate and heavy.
(c) A distribution will be considered as necessary to satisfy an immediate and heavy financial need of the need. In any eventEmployee only if:
(1) The Employee has obtained all distributions, a Hardship other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer;
(2) All plans maintained by the Employer provided that the Employee's Elective Deferrals (and Employee Post-Tax Voluntary Contributions) will be suspended for twelve months after the receipt of the hardship distribution;
(3) The distribution may is not be requested in excess of the amount of the an immediate and heavy financial need described at paragraph (b) including amounts necessary to pay any Federalfederal, state or local income taxes or penalties reasonably anticipated to result from the distribution.
(b) An immediate and heavy financial need exists when the Hardship withdrawal will be used to pay the following:
(1) expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Participant, his or her Spouse, children and other dependents;
(2) the cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Participant;
(3) payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents [as defined in Code Section 152, and for the taxable years beginning or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)];; and
(4) the need to prevent eviction of the Participant from, or a foreclosure on the mortgage of, the Participant's principal residence; The following reasons constituting an immediate and heavy financial need that permit a Hardship Withdrawal application shall apply for Plan Years beginning after December 31, 2005, unless adopted earlier by the Employer:
(5) payments for burial or funeral expenses for the Participant’s deceased parent, Spouse, child or dependent [as defined in Code Section 152, and for taxable years beginning on or after January 1, 2005, without regard to Code Section 152(d)(1)(B)]; or
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income).
(c) A distribution is not treated as necessary to satisfy an immediate and heavy financial need of a Participant to the extent the need may be relieved from other resources that are reasonably available to the Participant. Generally, this determination shall be made on the basis of all the relevant facts and circumstances. For purposes of this paragraph, the Participant’s resources are deemed to include those assets of the Participant’s Spouse and minor children that are reasonably available to the Participant. However, property held for the Participant’s child under an irrevocable trust or under the Uniform Gifts to Minors Act (or comparable state law) is not treated as a resource of the Participant. If the Plan Administrator approves a request for a Hardship withdrawal, funds shall be withdrawn from the contribution sources as elected in the Adoption Agreement unless provided otherwise by the Plan Administrator in an administrative procedure. Liquidation of a Participant’s assets for the purpose of a Hardship withdrawal will be allocated on a pro-rata basis across all the investment alternatives in a Participant’s account, unless otherwise provided by a directive from the Plan Administrator or by the Plan Participant. If Elective Deferrals (including ▇▇▇▇ Elective Deferrals, if any), Voluntary After-tax, or Required After-tax Contributions are suspended under 6.11(a)(3) above, such amounts will be suspended for all All plans maintained by the Employer (other than benefits under Code Section 125 plans) for six (6) months after the receipt of the Hardship distribution. The Code Section 402(g) limit for 2002 does not have to be reduced with respect to a Participant who has received a Hardship distribution in calendar year 2001. In addition, for Hardship distributions that occurred prior to 2002, all Plans maintained by the Employer must provide that the Employee may not make Elective Deferrals or ▇▇▇▇ Employee Elective Deferrals for the Employee’s 's taxable year immediately following the taxable year of the Hardship hardship distribution in excess of the applicable limit under section 401(g) of the Code Section 402(g) for such taxable year less the amount of such Employee’s 's Employee Elective Deferrals or ▇▇▇▇ Elective Deferrals Deferral for the taxable year of the Hardship hardship distribution.
(d) The Plan Administrator may implement on If a uniform and nondiscriminatory basis an ordering rule for Hardship withdrawals from a Participant’s account attributable distribution is made to pre-tax Elective Deferrals or ▇▇▇▇ Elective Deferrals.
(e) Effective August 17, 2006, if Hardship withdrawals are permitted in the Plan, the Plan’s Hardship withdrawal provisions will apply to the Participant’s Beneficiary in addition to the Participant’s Spouse or dependent, if permitted by the Plan Administrator. The Beneficiary to which this applies must have an unconditional right to all or a portion of the Participant’s account balance under the Plan upon the Participant’s death.
(f) The following provisions shall apply to distributions on account of financial Hardship to qualified Participants whose principal residence was in a Federally proclaimed disaster area affected by Hurricane ▇▇▇▇▇▇▇, Hurricane ▇▇▇▇ or Hurricane ▇▇▇▇▇, and as a result of any or all of such Hurricanes incurred an economic loss (a "Qualified Hurricane-related Distribution"). For purposes of these provisions, such rules shall apply to Qualified Hurricane-related Distributions that took place at any time on or after August 25, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇▇▇, at any time on or after September 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇, and at any time on or after October 23, 2005 and prior to January 1, 2007 with respect to Hurricane ▇▇▇▇▇.
(1) Such Qualified Hurricane-related Distribution(s) on account of financial Hardship from the Plan, when combined with all distributions obtained from all Qualified Plans maintained by the Employer or any other member of the Employer's controlled group shall not exceed $100,000. Further, the aggregate amount of Qualified Hurricane-related Distribution(s) received by a Participant for any taxable year shall not exceed the excess of $100,000, over the aggregate amounts treated as Qualified Hurricane-related Distributions received by the Participant for all previous taxable years.
(2) A Participant who was a recipient of a Qualified Hurricane-related Distribution shall have the right at any time during a three (3) year period commencing as of the day after the date that the Qualified Hurricane-related Distribution is received to make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution. Further, a Participant who was a recipient of a Qualified Hurricane-related Distribution for the purchase of a principal residence may make a repayment or repayments of said distribution to the Plan (or another Eligible Retirement Plan) in an amount not exceeding the principal amount of the Qualified Hurricane-related Distribution if said repayment occurred during the period commencing on August 25, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇▇▇-related distribution, during a period commencing on September 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇-related distribution, or during a period commencing on October 23, 2005 and ending February 28, 2006 with respect to a Hurricane ▇▇▇▇▇-related distribution.
(3) A Qualified Hurricane-related Distribution shall not be subject to the tax treatment that applies to an Eligible Rollover Distribution and shall be deemed to not violate the prohibitions on early distribution that apply to Elective Deferrals made to Code Section 401(k) plans, Code Section 403(b) arrangements and eligible Code Section 457 plans.
(4) The Plan could have provided for special hurricane–related distributions to Plan Participants who lived or worked in the Hurricane ▇▇▇▇▇▇▇ disaster area that qualified for individual relief from the Federal Emergency Management Agency. Similar relief is not available for Hurricanes ▇▇▇▇ and ▇▇▇▇▇. These special distributions could have been made available to Plan Participants residing outside the disaster area if they had a child, parent, grandparent or other dependent that lived or worked in the disaster area. In order to qualify for the special relief provided herein, the distribution had to be made by March 31, 2006. The six (6) month suspension on further Elective Deferrals is not applicable. These distributions were not restricted to the reasons specified in subparagraph 6.11(b). Plan Participants who received a distribution under this paragraph who themselves were not section 7.12, then the victim of Hurricane ▇▇▇▇▇▇▇ may not take advantage of the special repayment rules provided at (2) immediately above. The increase in the withdrawal limit to $100,000 as specified in (1) above also did not apply to these withdrawals.following shall apply:
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Sources: Profit Sharing Plan and Trust Agreement (Brigham Exploration Co)