Sec. 448. Hardship withdrawal rules for 403(b) plans
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Section 403(b) of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: For purposes of paragraphs
(7)and (11)— The following amounts may be distributed upon hardship of the employee: Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)). Qualified nonelective contributions (as defined in section 401(m)(4)(C)). Qualified matching contributions described in section 401(k)(3)(D)(ii)(I). Earnings on any contributions described in clause (i), (ii), or (iii). A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan. . Section 403(b)(7)(A)(i)(V) of such Code is amended by striking in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)) and inserting subject to the provisions of paragraph
(16). Paragraph
(11)of section 403(b) of such Code, as amended by the preceding provisions of this Act, is amended— by striking in in subparagraph
(B)and inserting subject to the provisions of paragraph (16), in , and by striking the penultimate sentence. The amendments made by this section shall apply to plan years beginning after December 31, 2024.