hardship distribution

hardship distribution definition - business

hardship distribution

Withdrawal of pretax contributions to a 401(k) savings plan because of an immediate and severe financial need of the employee. Paying medical bills is sufficient for a hardship distribution. Hardship distributions are limited and the IRS requires documentation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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