New Changes to Hardship and Unforeseeable Emergency Withdrawals
On April 5, 2019, Savings Plus implemented changes for both 401(k) hardship withdrawals and 457(b) unforeseeable emergency withdrawals. The following changes will allow you more flexibility during challenging times.
- You are no longer required to take out a loan from your Savings Plus account before you make a 457(b) unforeseeable emergency withdrawal. When making a 401(k) hardship withdrawal, you are still required to first take out a loan from your account unless you certify that the loan itself would cause additional economic hardship.
- Previously, you could only withdraw your principal (contributions) when making a hardship withdrawal. Now, you may draw from your investment earnings. In addition, you may now utilize any funds in your employer discretionary account for both hardship and unforeseeable emergency withdrawals.
- Finally, the requirement to cease plan contributions for six months after taking either a hardship or unforeseeable emergency withdrawal has been lifted, and you may continue your contributions to the plan without interruption.
For more information on these options available to you, visit the In-Service Withdrawals page.