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Code · STATUTE-COMPILATIONS · Bipartisan Budget Act of 2018 · Sec. 41114

Sec. 41114. MODIFICATION OF RULES RELATING TO HARDSHIP WITHDRAWALS FROM CASH OR DEFERRED ARRANGEMENTS

242 words·~1 min read·/statute-compilations/comps-14173/sec-41114

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## SEC. 41114 MODIFICATION OF RULES RELATING TO HARDSHIP WITHDRAWALS FROM CASH OR DEFERRED ARRANGEMENTS ###
(a)In General **[**[26 U.S.C. 401](/us/usc/t26/s401)**]** Section 401(k) is amended by adding at the end the following: > > #### “(14) Special rules relating to hardship withdrawals > > For purposes of paragraph (2)(B)(i)(IV)— > > > ##### “(A) Amounts which may be withdrawn > > The following amounts may be distributed upon hardship of the employee: > > > ###### “(i) > > Contributions to a profit-sharing or stock bonus plan to which section 402(e)(3) applies. > > > ###### “(ii) > > Qualified nonelective contributions (as defined in subsection (m)(4)(C)). > > > ###### “(iii) > > Qualified matching contributions described in paragraph (3)(D)(ii)(I). > > > ###### “(iv) > > Earnings on any contributions described in clause (i), (ii), or (iii). > > > ##### “(B) No requirement to take available loan > > 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.” > . ###
(b)Conforming Amendment Section 401(k)(2)(B)(i)(IV) is amended to read as follows: > > ###### “(IV) > > subject to the provisions of paragraph (14), upon hardship of the employee, or” > . ###
(c)Effective Date **[**[26 U.S.C. 401 note](/us/usc/t26/s401)**]** The amendments made by this section shall apply to plan years beginning after December 31, 2018.
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Sec. 41114
MODIFICATION OF RULES RELATING TO HARDSHIP WITHDRAWALS FROM CASH OR DEFERRED ARRANGEMENTS
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