On September 23, 2019, the Treasury Department and IRS published final regulations for hardship distributions from both 401(k) and 403(b) plans (the “Final Regulations”). Essentially the hardship distributions changes relax the hardship distribution requirements (i.e., making it easier for participants to obtain hardship distributions) and eliminate many burdens following a hardship distribution (i.e., allowing participants
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IRS Finalizes Regulations Allowing Plan Forfeitures to Fund QNECS and QMACS
By Joshua Rafsky on
The IRS recently finalized regulations that allow 401(k) plans to use forfeiture money to fund qualified non-elective contributions (“QNECs”) and qualified matching contributions (“QMACs”). These regulations finalize proposed regulations issued last year (you can read our prior coverage of the proposed regulations here).
By way of background, QNECs and QNECs are types of employer…