The April 1, 2015 edition of the Internal Revenue Service Employee Plans News notified that electronic self-certification alone for 401(k) deferral hardship distributions may not be sufficient proof and can be a plan qualification issue. In the event of an audit, supporting documents that prove the reason for a hardship distribution must have been obtained and retained by the employer of a 401(k) plan before authorizing such distribution.
Read the entire article in Entrust's Learning Center to find out what constitutes an appropriate reason for a hardship distribution and how this affects Individual 401(k) plan owners.