NRECA Employee Benefits Weekly

Updated 401(k) Plan Hardship Withdrawals Brochure Available

Posted on Posted in Retirement Benefits

An updated “401(k) Pension Plan: What You Need to Know about Hardship Withdrawals” brochure is now available for use with your participants. If your cooperative offers the hardship withdrawal option, this brochure is a resource to explain the circumstances and process for hardship withdrawals.

The brochure provides a summary of key information, including:

  • Determining the eligible amount for withdrawal;
  • The potential consequences of the withdrawal – including tax implications; and
  • Details of the required documentation that must be submitted.

Participants are also provided information on how to rebuild their nest egg after a financial setback. And, if they have questions about alternatives to taking a hardship withdrawal or the long-term impact, participants are encouraged to contact NRECA’s Personal Investment & Retirement Consulting team.

Co-ops may order printed copies of the new hardship withdrawals brochure (RMBR17081) for their employees by contacting the Member Contact Center at 866.673.2299. A digital copy of the brochure is available on the Employee Benefits website at BA Guide > 401(k) Pension Plan > Loans & Withdrawals > Hardship Withdrawal.

This brochure replaces the now expired “Taking a Hardship Withdrawal from Your 401(k) Pension Plan” (RMBR11050) brochure.

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