Search
 

Hardship withdrawals are hard for everyone

It's not just HR that hardship withdrawals and loans hurt. For the participant, it means a possible and often unexpected tax bill next year. For you, it means depleting your plan's assets.

By Liz Davidson | Updated on November 04, 2009

An employee just got off a difficult phone call with their mortgage lender – they can’t afford their monthly payment for the third month in a row. They’re frustrated and more than likely, ready to do whatever it takes to keep their home. Their next call is to your client’s HR department.

HR professionals are overwhelmed with calls like this; their employee wants to take a hardship withdrawal from their retirement plan and they could use some help communicating the consequences of pulling from one’s retirement plan, along with the backlash they get when employees eventually get their tax bill.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.