401(k) Pension Plan: Hardship Distribution Process Change Reminder

Effective January 1, 2019, NRECA made a change—as allowed by the Bipartisan Budget Act (BBA) of 2018—to end the contribution suspension term of six months for individuals who take a hardship distribution from their 401(k) Pension Plan account. This change affects those cooperatives that have adopted the provision allowing for hardship withdrawals.

As a result of this change, benefits administrators no longer receive a notification when an employee’s hardship withdrawal has been approved and distributed.

The current BA Guide content reflects the rule change. You will find PDFs of the “What You Need to Know About Hardship Withdrawals” brochure, “401(k) Pension Plan Financial Hardship Withdrawal Application Instructions and Application” and “Special Tax Notice.”

If you have questions about these changes, please contact your field representative or NRECA’s Member Contact Center at 866.673.2299, or via email at contactcenter@nreca.coop. Representatives are available from 7 am to 7 pm, Central time. Co-op employees with questions about how hardship withdrawals may affect their retirement planning strategy should contact NRECA’s Personal Investment & Retirement Consulting team at 866.673.2299, option 6 or via email at pirc@nreca.coop.