In 2018, The Bipartisan Budget Act of 2018 was passed by Congress.
What is the Bipartisan Budget Act of 2018?
Among other items, the Act contains several provisions that impact 401(k) and 403(b) retirement Plans, including changes that will relax certain rules for participant hardship withdrawals for Plan years starting after December 31, 2018. On November 9, 2018, the IRS issued proposed rules regarding hardship distributions to conform the IRS’s regulations to the Act and to incorporate other changes and guidance.
How does the Bipartisan Budget Act of 2018 affect me?
The new legislation eliminates many of the restrictions related to hardship distributions. While there has been not yet been any definitive IRS guidance on the required timing of adopting amendments for the new provisions, plans are generally allowed to operate using new provisions enacted by law until such a time that guidance is issued by the IRS.
What is the Robin S. Weingast & Associates Team doing to help?
We are here to help our clients who want to implement the changes for your plan. The Robin S. Weingast & Associates Team will provide the amendment once the final language for the amendment is provided.
But please note, adoption of such an amendment will not be required until the last day of the 2019 plan year (i.e., December 31, 2019).
Do you have any additional information on the Bipartisan Budget Act of 2018?